Suppose there are 75 million people in the labor force. The labor force participation rate is 60% and the unemployment rate is 8%. Instructions: Enter whole numbers in each box. a. The number of people in the working-age population is. b. The number of people who are part of the working-age population but not part of the labor force is. c. The number of unemployed workers is. d. The number of employed workers is

a). The number of people in the working age population=125 million

b). The number of people who are part of the working-age population but not part of the labor force=50 million

c). The number of unemployed workers=6 million

d). The number of unemployed workers=69 million

Explanation:

a).

The labor force is the total number of people who are employed and also the unemployed who are looking for work.

The labor participation rate is a percentage expressed as;

Labor participation rate = (total number of employed+unemployed looking for work) / Total number in working age population

where;

total number of employed and unemployed looking for work=75 million

labor participation rate=60%

total number in working age population=p

replacing;

(60/100) = 75 million/p

60 p=75 million*100

p=75 million*100/60

p=125 million

The number of people in the working age population=125 million

b). Working age population but not labor force=Total working age population-labor force

= (125-75) = 50 million

The number of people who are part of the working-age population but not part of the labor force=50 million

c). Unemployment rate = (number of unemployed persons/labor force) * 100

where;

number of unemployed persons=x

Unemployment rate=8%

labor force=75 million

replacing;

8/100=x/75 million

x=75 million*8/100=6 million

The number of unemployed workers=6 million

d). Labor force=number of employed workers+number of unemployed workers

where;

labor force=75 million

number of employed workers=y

number of unemployed workers=6 million

replacing;

75 million=y+6 million

y = (75-6) million

y=69 million

The number of unemployed workers=69 million