In year 2013, the population of island I is 210, 000 people, of which 150,000 are aged 16 or older. Of this 150,000 people, 100,000 have jobs (50,000 do not). 30,000 are separated but actively seeking employment and there are 20, 000 who have given up the job search in frustration.
a. Find the employment rate is for 2013
b. What is the labor force participation in 2013?
In year 2014, the economy of the island moves out of a long recession and job openings increases. As a result, 5000 discouraged workers become encouraged and begin searching for jobs.
c. What is the unemployment rate in 2014?
If the recession returns in 2015 and 4000 unemployed workers become discouraged
d. What would be the unemployment rate? WAP=150,000 Employed, E=100,000 Unemployed, U=31,000=35,000-4,000 Discouraged, D=19,000=15,000+4,000 LF= E+U=100,000+31,000=131,000 UR= (U/LF)*100 %=( 31,000/131,000) *100 %=23.66% e. What can you conclude from 2014 to 2015? Is the economy in a better shape in 2015? Explain why
If the recession returns in 2015 and 4000 unemployed workers become discouraged
d. What would be the unemployment rate?
e. What can you conclude from 2014 to 2015? Is the economy in a better shape in 2015? Explain why