Chapter 8: Q.8 (page 214)
What is the difference between being unemployed and being out of the labor force?
Unemployed means able and willing to work but no job. Out of labor force means not willing to work.
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The U.S. unemployment rate increased from 4.6%
in July 2001 to 5.9% by June 2002. Without studying the subject in any detail, would you expect that a change of this kind is more likely to be due to cyclical unemployment or a change in the natural rate of unemployment? Why?
Are U.S. unemployment rates distributed evenly across the population?
Assess whether the following would be counted as “unemployed” in the Current Employment Statistics survey.
a. A husband willingly stays home with children while his wife works.
b. A manufacturing worker whose factory just closed down.
c. A college student doing an unpaid summer internship.
d. A retiree.
e. Someone who has been out of work for two years but keeps looking for a job.
f. Someone who has been out of work for two months but isn’t looking for a job.
g. Someone who hates her present job and is actively looking for another one.
h. Someone who decides to take a part time job because she could not find a full time position.
Are all adults who do not hold jobs counted as unemployed?
If you are out of school but working part time, are you considered employed or unemployed in U.S. labor statistics? If you are a full time student and working 12 hours a week at the college cafeteria are you considered employed or not in the labor force? If you are a senior citizen who is collecting social security and a pension and working as a greeter at Wal-Mart are you considered employed or not in the labor force?
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