Measuring Unemployment

Question 1

unemployment rate

Answer 1

measured as a percentage of the workforce that is of working age, actively seeking a job, but cannot find one

Question 2

unemployment rate calculation

Answer 2

[(# of unemployed people)/total labor] * 100

Question 3

discouraged workers

Answer 3

people who are unemployed, but have given up looking for work (are not considered in the unemployment rate)

Question 4

if the labor force is 300,000 workers, but 67,500 are unemployed, what is the unemployment percentage

Answer 4

23%

Question 5

if the labor force decreases while the number of unemployed workers stays constant, how would the unemployment rate change?

Answer 5

unemployment rate would increase

Question 6

one of the main problems with calculating the unemployment rate is that part-time work counts the same as full-time work. If part-time workers were removed from the sum of employed people, what would happen to the calculation?

Answer 6

unemployment rate would increase

Question 7

unemployment rate if the labor force is 90 people and 6 are unemployed

Answer 7

6.7%