C h a p t e r 2 2
The Bureau of Labor Statistics reported the following data for
the second quarter of 2008:
Labor force: 154,294,000
Working-age population: 233,410,000
Calculate for that month the
a. Unemployment rate.
Unemployment rate is 5.3 percent. The unemployment rate is the
percentage of the labor force that is unemployed. The labor force
is the sum of the people unemployed and the people employed. So
the number of people who are unemployed is 154,294,000 minus
146,089,000, which is 8,205,000. The unemployment rate equals (the
number of people unemployed divided by the labor force) multiplied
by 100. That is, (8,205,000/154,294,000)
100, which is 5.3
b. Labor force participation rate.
The labor force participation rate is 66.1 percent. The labor force
participation rate is the percentage of the working-age population
that is in the labor force. The working-age population is
233,410,000 and the labor force is 154,294,000, so the labor force
participation rate equals (154,294,000/233,410,000)
equals 66.1 percent.
c. Employment-to-population ratio.
The employment-to-population ratio is 62.6 percent. The
employment-to-population ratio is the percentage of the people
of working age who have jobs. The employment-to-population ratio
is equal to the number of people employed divided by the working-age
population all multiplied by 100. The employment-to-population
ratio is (146,089,000/233,410,000)
100, which is 62.6 percent.
In March 2007, the U.S. unemployment rate was 4.4 percent. In
August 2008, the unemployment rate was 6.1 percent. Use this
information to predict what happened between March 2007 and
August 2008 to the numbers of
a. Job losers and job leavers.
The number of job losers probably increased and the number of job
leavers probably did not change much. The rise in the unemployment