Question

Need 5 and 6.

The working age population of Shepherdlandia is 2000.
The number of employed persons in Shepherdlandia is 1050.
The total labor force in Shepherdlandia is 1140.
1. How many people are unemployed? (1 point) _____________ (2 decimal places)

2. What is the unemployment rate? (2 points) ____________ (2 decimal places)
3. What is the labor force participation rate? (2 points) ______________ (2 decimal places)

4. Bob worked for pay last week for a total of 10 hours. He is looking for full-time employment, so he is only
employed 25%. Is Bob counted as employed, unemployed or neither as calculated by the U.S. BLS? (3 points)
5. Due to a recession 10 people, who had been counted as unemployed in the above table, has decided to not
work for the next 9 months while he attends classes at SJR State College. What is the new unemployment rate
in Shepherdlandia that results from their decision? (4 points)
(3 decimal places)
6. In Shepherdlandia (after the 10 people in #5 made their choice), the BLS decides to count the 20 citizens that
are serving in the armed forces on active duty in the working age population. Now, what is the
unemployment rate? (4 points) (3 decimal places)

Answer 1

Given that:

• Working-age population in Shepherdlandia: 2000
• Employed persons in Shepherdlandia: 1050
• Labor force in Shepherdlandia: 1140

5. Due to recession, 10 persons decided to take classes in the college and voluntarily decided to not looking for a job or not to work for the next nine months, who was earlier considered as unemployed. According to this information, these people are removed from the labor force as they are engaging in another activity, which is, taking classes at SJR State College. Students are not considered in labor force as they are not willing to work.

As a result, they should be excluded from the labor force that reduces the total number of unemployed from 90 to 80. Hence, the new unemployment rate in Shepherdlandia would be:

6. According to the given information, there is an increase in labor force by 20 people who are earlier counted in the working-age population. As a result, there will be an increase in labor force and employed person by 20, and there is no change in the unemployed person. As a result, the new unemployment rate, after making an adjustment in part 5, would be: