Ch 06 - Chapter 6: Monitoring Jobs and the Price level 1....

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C h a p t e r 6 : M o n i t o r i n g J o b s a n d t h e P r i c e l e v e l 1. Jobs and Wages A. Population Survey 1. The U.S. Census Bureau conducts monthly surveys to determine the status of the labor force in the United States. 2. United States population is divided into two groups a) The working-age population , which is the number of people aged 16 years and older who are not in jail, hospital, or other institution (in 2006, the working-age population was 228.7 million). b) People too young to work (less than 16 years of age) or in institutional care. 3. The working-age population is divided into two groups: people in the labor force and people not in the labor force. In 2006, 152.6 million people were in the labor force and 76.1 million people were not in the labor force. 3. The labor force is the sum of employed and unemployed workers. To be considered unemployed, a person must be: a) without work and have made specific efforts to find a job within the past four weeks, or b) waiting to be called back to a job from which he or she was laid off, or c) waiting to start a new job within 30 days. 4. Figure 6.1 shows the population labor force categories for 2006. B. Three Labor Market Indicators 1. The unemployment rate is the percentage of the labor force that is unemployed. a) The unemployment rate is (Number of people unemployed/Labor force) × 100. b) In 2006, the number of people employed was 145.3 million and the number unemployed was 7.3 million. The labor force was 152.6 million so the unemployment rate was (7.3 million)/(152.6 million) × 100, which is 4.8 percent. c) The unemployment rate reaches its peaks during recessions. 2. The labor force participation rate is the percentage of the working-age population that is in the labor force. a) The labor force participation rate is (Labor force/Working-age population) × 100. In 2006 the labor force participation rate was 66.7 percent. b) Overall, the labor force participation rate increased from 59 percent in the 1960s until 2000, after which it has fallen slightly. Since 1961, the labor force participation rate for men has declined, but for women has increased. c) The labor force participation rate falls during recessions as discouraged workers people available and willing to work but who have not made an effort to find work within the last four weeks —leave the labor force. 3. The employment-to-population ratio is the percentage of working-age people who have jobs.
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a) The employment-to-population ratio is (Number of people employed/Working-age population) × 100. b)
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This note was uploaded on 04/03/2009 for the course ECON 2101 taught by Professor Bill during the Spring '09 term at Temple.

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Ch 06 - Chapter 6: Monitoring Jobs and the Price level 1....

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