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Suppose the adult population over the age of 16 is 237.8 million and the labor force is 153.9 million (of whom 139.1 million are employed). How many people are 鈥渘ot in the labor force?鈥 What are the proportions of employed, unemployed and not in the labor force in the population? Hint: Proportions are percentages.

Short Answer

Expert verified

83.9 million people are not in labor force. 58.5% employed persons. 6.2% unemployed persons. 35.3% out of labor force

Step by step solution

01

Step 1. Given information

Total Adult population (>16years), say, N=237.8mn

Labor force(L)= 153.9mn

Employed(E)=139.1mn

02

Step.2 Calculation-1

Not within the labor force: It refers to people who are either not willing or able to work. it's calculated by subtracting the number of individuals within the labor from the entire adult population

Populationoutoflaborforce=Totaladultpopulation-Laborforce=237.8mn-153.9mn=83.9mn

03

Step.3 Calculation-2

Proportion/percentage of Employed: It refers to the proportion of these people that belong to the labor and dealing with those that are within the labor pool.

Unemployed(U)=LaborForce-Employed=L-E=15.39mn-139.1mn=14.8mnPercentageUnemployedintotalpopulation=14.8237.8100=6.22%

Now, percentage of employed

PercentageEmployed=EmployedLaborForce100=139.1237.8100=58.49

And, now the percentage of total population that is not in labor forcecan be obtained by,

AdultsnotinlaborforceTotalpopulation100=83.9237.8100=35.3

04

Step 4. Conclusion

Thus, the adult population has the subsequent proportions:

139.1/237.8 = 58.5% employed persons

14.8/237.8 = 6.2% unemployed persons

83.9/237.8 = 35.3% persons out of the labor.

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Most popular questions from this chapter

Assess whether the following would be counted as 鈥渦nemployed鈥 in the Current Employment Statistics survey.

a. A husband willingly stays home with children while his wife works.

b. A manufacturing worker whose factory just closed down.

c. A college student doing an unpaid summer internship.

d. A retiree.

e. Someone who has been out of work for two years but keeps looking for a job.

f. Someone who has been out of work for two months but isn鈥檛 looking for a job.

g. Someone who hates her present job and is actively looking for another one.

h. Someone who decides to take a part time job because she could not find a full time position.

Would you expect hidden unemployment to be higher, lower, or about the same when the unemployment rate is high, say 10%, versus low, say 4%? Explain.

If you are out of school but working part time, are you considered employed or unemployed in U.S. labor statistics? If you are a full time student and working 12 hours a week at the college cafeteria are you considered employed or not in the labor force? If you are a senior citizen who is collecting social security and a pension and working as a greeter at Wal-Mart are you considered employed or not in the labor force?

Is the higher unemployment rates for minority workers necessarily an indication of discrimination? What could be some other reasons for the higher unemployment rate?

Over the long term, has the U.S. unemployment rate generally trended up, trended down, or remained at basically the same level?

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