Chapter 28 Post-Class Assignment Part II: Unemployment

Excluding discouraged workers from the official unemployment rate may cause the official rate to the true extent of underemployment.

understate

According to this formula, what is the unemployment rate of this economy of six people?

50%

According to this formula, what is the labor force participation rate of this economy of six people?

80%

Identify each person in the table as structurally, frictionally, or cyclically unemployed.

Carlos left his job as a plumber when his wife took a position in another region. The quantity of plumbing services demanded is considerably lower in the new region, in part because of high union-negotiated wages. He would like to work at the high union wage but remains unemployed due to a lack of plumbing jobs.= Structural Deborah is a physician who has decided to relocate to California to be closer to her family. She is currently interviewing with several prestigious hospitals in the San Francisco Bay Area.= Frictional Automobile demand has fallen during a recent recession, and Janet has been laid off from her job on the assembly line.= Cyclical

True or False: This economy is not currently at its natural rate of unemployment.

False because total unemployment is the sum of frictional, structural, and cyclical unemployment. If there is no cyclical unemployment, the economy is at its natural rate of unemployment, equal to the sum of frictional and structural unemployment. In this case, because cyclical unemployment is 0.0%, the economy is at its natural rate of unemployment.

Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. Improving a widely used job-search website so that it matches workers to job vacancies more effectively Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks Establishing government-run employment agencies to connect unemployed workers to job vacancies

Improving a widely used job-search website so that it matches workers to job vacancies more effectively Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks Establishing government-run employment agencies to connect unemployed workers to job vacancies

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.

Jake is a 45-year-old autoworker who was laid off from his job 6 months ago. He is frustrated with his inability to find a new full-time position. Last week, he took a part-time job but was given only 3 hours of work.= Employed Latasha is a 30-year-old professional basketball player. She finished her last season as a player 3 weeks ago and is currently interviewing for a coaching position.= Unemployed Nick is a 77-year-old retired professor. He enjoys volunteering at the local public library.= Not in the labor force Alyssa is a 31-year-old science teacher who taught at West Valley Middle School last year. Due to budget cuts, she was laid off at the end of the school year. It's the summer now, and after a few weeks of vacation with her family, she is looking for a part-time job as a tutor.= Unemployed Tim is a 20-year-old American Studies major at the University of Tennessee. It's summer now, and he is working as a lifeguard in Mobile, Alabama. = Employed Rosa is a 10-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 $25 per week.= Not in the adult population

Complete the right half of the following equation to reflect the labor force participation rate reported by the BLS. Labor Force Participation Rate =

Labor Force Participation Rate = 100 x (Number in the Labor Force/ Adult Population)

Fill in the following table by calculating the official unemployment rate and the U-4 measure of labor underutilization.

Official Unemployment Rate= 9.42% U-4 Measure of Labor Underutilization Rate= 10.19%

Which of the following statements correctly describe discouraged workers? (If none of the choices apply, leave all of the checkboxes blank.) Check all that apply. They have not looked for a job in 4 weeks (or longer), but they would like a job and are available for work. They are employed workers who want to earn higher wages. They are full-time workers who would like to work only part-time. They have given up on looking for a job.

They have not looked for a job in 4 weeks (or longer), but they would like a job and are available for They have given up on looking for a job.

U-4 formula=

U-4= 100 x Unemployed + Discouraged/ Labor Force + Discouraged

Complete the right half of the following equation to reflect the unemployment rate reported by the BLS. Unemployment Rate =

Unemployment Rate = 100 x (Number of unemployed workers/ Labor Force)

Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will ??? . The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will ??? . The temporary unemployment resulting from such sectoral shifts in the economy is best described as ??? unemployment.

decrease, increase, frictional