ECON 1202 Lecture Notes - Lecture 10: Frictional Unemployment, Structural Unemployment, Full Employment

Q#1. Homemakers are not included in the employment or labor force totals compiled by the Bureau of Labor Statistics household survey. They are included in the working-age population totals. Suppose that homemakers were counted as employed and included in the labor force statistics. How would that change affect the following: (a) labor force; (b) labor force participation rate; (c) unemployment rate, and (d) the employment-population ratio? (answer has to be 560 charceters or less)

#Q2: What advice would you give to someone who is frictionally unemployed? What advice would give someone who is structurally unemployed? What advice would you give someone who is cyclically unemployed? (Answer has to be 560 characeters or less)

Here is a report from a not-very-efficient BLS survey taker: "There were 65 people in the houses I visited, 10 of them children under 16 and 10 retired; 25 people had full-time jobs, and 5 had part-time jobs. There ware 5 full-time homemakers, 5 full-time students over age 16, and 2 people who were disabled and cannot work. The remaining people did not have jobs but all said they would like one. One of these people had not looked actively for work for three months, however." Find the labor force, the working-age population, the number of employed workers, and the number of unemployed workers.

In calculating the unemployment rate, part-time workers are:

A. Counted as unemployed because they are not working full-time

B. Counted as employed because they are receiving payment for work.

C. Used to determine the size of the labor force, but not the unemployment rate

D. Treated the same as "discouraged" workers who are not actively seeking employment