Question

In: Economics

1. Many Americans are experiencing disruptions in their employment situations due to the COVID-19 crisis. The...

1. Many Americans are experiencing disruptions in their employment situations due to the COVID-19 crisis. The Bureau of Labor Statistics continue to collect and publish unemployment data using the same definitions we studied in class. Categorize the following individuals as employed, unemployed, or out of the labor force.

a. A college student who has stopped driving for Uber 15 hours a week has stopped doing so because of decreased demand. On the other hand, he has started delivering food for Postmates for 10 hours per week.

b. A college student whose unpaid internship was suspended while the K Street office think-tank she works for is closed.

c. A waitress who has been furloughed from Guapos in Tenleytown and is not looking for work because no restaurants are hiring.

d. A waiter who has been furloughed from Chef Geoff’s and is applying for a temporary job at an Amazon Warehouse.

e. A woman who works 40 hours per week but has not been working this week because she has COVID-19.

f. Briefly describe someone you know whose employment situation has changed in the past month. Which category were they in a month ago? Now? Defend your answer using the definitions given in class.

Solutions

Expert Solution

a) The college student who has stopped driving for Uber for 15 hours a week has stopped doing the same due to decreased demand and has instead started delivering food  for another company for 10 hours. Here the number of hours worked by the student has decreased and the company for which he is currently working has changed. He is still employed though his laboring hours and company is different.

b) The college student whose unpaid internship was suspended while the think tank office she worked for is closed. If the office is temporarily closed that does not mean the student's employment is terminated. Hence the student is still employed. However if the office is closed permanently then the employment will be terminated. Many unpaid internships are considered as employment hence the the suspension can be considered as termination of employment from the unpaid internship.

c) In this case the waitress is unemployed and out of the labor force as she is not seeking any employment after being furloughed. Those who are in the working population and are who are employed or or those who are unemployed but are seeking employment are said to be in the labor force.

d ) In this case the waitress is unemployed but still in the labor force as she is still seeking employment.

e) The women is currently not working due to a illness, but she is still in the labor force and is employed, as temporarily not working due sickness does not constitute for being unemployed.

f) A friend of mine who works in a software company is currently working from home due to COVID-19. There has been no drastic changes in his employment situation, just the workload has reduced as their clients have contracted their business activities due to COVID-19.


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