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LOS a: Define an unemployed person and interpret the main labor market indicators.

A)	Those people of working age who are either employed or seeking employment.

B)	All people of working age.

C)	Those people of working age who are not retired or in prison.

The labor force includes people of working age (16+) who are either employed or seeking employment. People who are not employed or seeking employment (e.g., homemakers, full-time students, "discouraged" workers) are not counted as part of the labor force.

When economists are speaking of the labor-force participation rate, they are referring to which of the following? The labor-force participation rate is the percentage of the:

A)	working-age population who are working.

B)	labor force who are new entrants (less than one year of work experience).

C)	working-age population who are either working or actively looking for work.

The labor-force participation rate is the percentage of the working-age population who are employed or actively seeking employment. The labor-force participation rate can be calculated as: (the labor force / working-age population) × 100.

Bradley works a 14-hour-per-week job as a bartender at McQuigley’s Pub. Maddeline left her position at a commercial bank to raise her two-year old daughter. How would these individuals be classified from the viewpoint of employment statistics?

Employed

Not in labor force

Employed

Not in labor force

The labor force includes all people who are either employed or actively seeking employment. As such, Bradley is considered employed from the viewpoint of employment statistics whereas Maddeline is not counted in the labor force.

Which of the following is the most accurate definition of the unemployment rate? The unemployment rate is the number of:

A)	unemployed individuals divided by the total labor force.

B)	unemployed individuals divided by the number of employed individuals.

C)	individuals employed divided by the number of people who are unemployed and retired.

The unemployment rate of a country is the percentage of people in the labor force who are unemployed. It is calculated as: unemployment rate = (number of unemployed / labor force) × 100. The labor force includes those individuals who are employed or are actively seeking employment.

Given the following information for a country, what is the labor force participation rate?

Labor force participation rate = (# of persons 16 or older who are employed or seeking employment) / (civilian population 16 or older)
Labor force participation rate = (8 + 152) / 210 = 76%.

Total civilian population 16 and over	210
Those not in the labor force	50
Unemployed	8
Employed	152