Question

Refer to the scenario to answer questions 1  and 2

A government worker surveys a number of households and comes up with the following information: 15 of the people were children under 16, 12 of the people were retired but still capable of working, 38 people had full-time jobs, 5 had part-time jobs, 8 were stay-at-home parents, 10 were full-time students over the age of 16, 15 were disabled people who could not work, 10 people had no job but were looking for jobs, and there were 5 people who wanted a job but were not looking for a job.

1. Calculate the unemployment rate.

2. How many people are not in the labor force but work eligible.

Answer 1

We have the following information

Description	Numbers	Category
Children under 16 year	15	Out of labor force
Retired	12	Out of labor force
Full time jobs	38	Employed
Part time jobs	5	Employed
Stay at home parents	8	Out of labor force
Full time students over 16 years	10	Out of labor force
Disabled	15	Out of labor force
No job but were looking for job	10	Unemployed
No job and also not looking for job	5	Out of labor force
Total Population	118

Part 1) Now unemployment rate is given by the following formula

Unemployment rate = (Total Unemployed/Labor Force) × 100

Labor force = Employed + Unemployed

Labor force = 38 + 5 + 10 = 53

Unemployed = 10

Unemployment rate = (10/53) × 100

Unemployment rate = 18.87%

Part 2) People who are out of labor force but work eligible are

Retired = 12

Stay at home parents = 8

No job and also not looking for job = 5

Full time students over 16 years = 10

People who are out of labor force but work eligible = 12 + 8 + 5 + 10 = 35