Question

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 information about Shepherdlandia:

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

1. Total number of unemployed person in Shepherdlandia would be:

2. From the above part, number of unemployed persons is 90. Therefore, unemployment rate in Shepherdlandia would be:

3. Labor force participation rate in Shepherdlandia would be:

4. According to the given information, Bob works as a part-time employee last week as he worked for 10 hours and receives payment of it. In the BLS report of United States, Bob will be considered as employed last week as an individual who gets income from any economic activity that can be part-time or full-time, will be considered in the employment rate.