Question

Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person’s status as employed, unemployed, “not in the labor force” (if not in the civilian labor force but still part of the adult population), or “not in the adult population” if not in the civilian adult population. Person Status Lorenzo is a 75-year-old professor. He teaches only one or two courses a year, but he's still pursuing an active research agenda. Neha is a 36-year-old autoworker who was just laid off by her employer. She is trying to find any kind of job to help make ends meet. Sam is a 41-year-old graphic designer who is taking 2 years off from work to care for his small daughter. Beth is a 29-year-old who lost her job as an associate producer for a radio station. After spending a few weeks out of work and interviewing for several other positions, she gave up on her job search and decided to go back to grad school. She made that decision a few months ago. Andrew is a famous novelist. He is spending the summer at his lake house in upstate New York, doing a little writing each day but mostly spending his time gardening and reading. Teresa is a 11-year-old student at West Valley Middle School. She babysits her younger sister and does other chores, so her parents give her an allowance of $20 per week. Complete the right half of the following equation to reflect the labor force participation rate reported by the BLS. Labor Force Participation Rate = According to this formula, what is the labor force participation rate of this economy of six people? 33.33% 40% 50% 60% Complete the right half of the following equation to reflect the unemployment rate reported by the BLS. Unemployment Rate = According to this formula, what is the unemployment rate of this economy of six people? 33.33% 40% 50% 60%

Answer 1

1. Lorenzo is a 75-year-old professor. He teaches only one or two courses a year, but he's still pursuing an active research agenda.

Employed. Employment includes all people who did any kind of work, whether part-time or full –time.

2. Neha is a 36-year-old autoworker who was just laid off by her employer. She is trying to find any kind of job to help make ends meet.

           Unemployed, as Neha is actively looking for a job.

3. Sam is a 41-year-old graphic designer who is taking 2 years off from work to care for his small daughter.

Not in the labor force but part of the adult population. Labor force excludes people who are not actively looking for work.

4. Beth is a 29-year-old who lost her job as an associate producer for a radio station. After spending a few weeks out of work and interviewing for several other positions, she gave up on her job search and decided to go back to grad school. She made that decision a few months ago.

Not in the labor force but part of the adult population. Labor force excludes people who are not actively looking for work.

5. Andrew is a famous novelist. He is spending the summer at his lake house in upstate New York, doing a little writing each day but mostly spending his time gardening and reading.

Employed.

6. Teresa is a 11-year-old student at West Valley Middle School. She babysits her younger sister and does other chores, so her parents give her an allowance of $20 per week.

            Not in adult population, as anyone under 16 years of age in not included

            in the labor force.

1. LFPR = Labor Force / Civilian Non-Institutionalized Population

where the Labor Force = Employed + Unemployed

Employed=2; Unemployed =1, Labor force = 2+1=3

Civilian Non-Institutionalized Population =5

LFPR= (3/5)*100= 60%

2. Unemployment Rate = (Number of Unemployed / Labor Force) * 100

                                  = (1/3)*100

                                   =33.33%