Economic question?

Question

1. Suppose that the BLS reported that the Labor Force was 124.8 million; employment was 117.9 million and the working-age population was 188.1 million.

a) Calculate the unemployment rate.

b) Calculate the Labor force participation rate (LFPR).

2. In the above problem, if the full-employment is determined to be at 5% of unemployment, how many will have to find jobs to attain full-employment?

Answer 1

1:

a)

U=(124.8-117.9)/124.8=0.0553=5.53%

b)

LFPR=124.8/188.1=0.663=66.3%

2:

U(f)=5%

U=5.53%

5.53-5=0.53%

124.8*0.53%=0.66 millions

Or another approach:

U(f)=124.8*5%=6.24 millions

U=124.8-117.9=6.9 millions

6.9-6.24=0.66 millions