Practice Problems for Unemployment:
1. What is structural unemployment?
2. What is cyclical Unemployment?
3. What is frictional Unemployment?
4. Categorize the following groups into either structural, frictional, or cyclically unemployed:
a. 300 People got laid off do to a downturn in the economy.
b. 4,000 people are unemployed because they quit their job and are looking for a better one.
c. 7,000 college grads are looking for jobs
d. 250 textile workers are laid off and are unemployed, because they only have one set of skills.
e. Out of the 4 scenarios above, which one is correctable and by who?
5. Calculate the labor force & the unemployment rate using the following data below: Also calculate the number of frictional, structural, and cyclical unemployed individuals using the data available.
900 ( Ages 14-15) looking for work
3,000 Retirees
45,000 (ages 16-25) laid off do to slow sales at their company and are now looking for work
90,000 Currently working
99,000 Full-Time students
890 (Ages 23-45) working part-time
9523 (Ages 34-54) Volunteer Workers
1000 (Ages 45-67) temp workers
12,000 Military Soldiers
7895 Discouraged Workers
65,485 family workers who worked 12 hours a week part-time
34, 000 (Ages 56-78) terminated Mill-Workers who lack other hirable skills. Who are now at home watching Oprah.
278 (Ages 22-25) recent college grads who are just entering the workforce (currently unemployed- but are looking)
6. Using the data above calculate the Labor Force Participation rate.
The current non-institutionalized population is 1,000,000 people.
7. Calculate the labor force & the unemployment rate using the following data below: Also calculate the number of frictional, structural, and cyclical unemployed individuals using the data available.
987,156 Currently Working
543,321 Military Soldiers
9845 (ages 13-14) looking for work
23,000 volunteer workers
45,600 Part-Time workers
12,000 (ages 15) looking for work
234 Self-Employed
56 family workers who worked 15 hrs a week
67,432 (ages 23-25) looking for work
6543 Discouraged Workers
544,321 (ages 16-20) looking for work
67,890 laid off secretaries looking for work
543 recent college grads that are going back to graduate school
5654 Temp Workers
8. Using the data above calculate the Labor Force Participation rate.
The current non-institutionalized population is 6,000,000 people.