Question

suppose the following data describe a nation’s population: Year 1 Year 2 Population 200 million 203 million Labor Force 120 million 125 million Unemployment rate 6 percent 6 percent a. How many people are unemployed in each year? b. How many people are employed in each year? c. Compute the employment rate (i.e., number employed/population) each year. d. How can the employment rate rise when the unemployment rate is constant?

Answer 1

a,b) unemployed people in Year 1: $120 \times 0,06 = 4,8 million$

employed people in Year 1: $120 - 4,8 = 117,2million$

unemployed people in Year 2: $125 \times 0,06 = 7,25 million$

employed people in Year 2: $125 - 7,25 = 118,75 million$

c) employment rate Year 1 and 2: $100\% - 6\% = 94\%$

d) it is possible when the labor force and number of employed people rises while the pace of employed people rise must be higher