Chapter 28: Unemployment

1,
a. the adult population 235,654,000.
b. the labor force 154,925,000.
c. the labor-force participation rate 65.74%.
d. the unemployment rate 9.51%.
2,
a. Person J gets a job after a long search, in this case, the employment increases
which means that unemployment rate reduces.On the other hand, Person J gets the
job after the long search which means that the Person was willing to do the job but
wasn't able to get a job. So, the person was in the labor force, prior to a now person
was unemployed but now employed. This will not change the Labor-Force
Participation.
b. Person T will get a job immediately after the completion of college, this
increases the employment but not effects the employment rate because earlier
Person TT was a student and was not labor force, but now Person J will be in the
labor force which improves the employment rate but has not effect the
unemployment rate. Since, Person J now comes in the labor force, which increases
the Labor-Force Participation in the Adult Population.
c. Person A fails to get any job and get retirement in such case the person will not
be an unemployed but now moves out from the labor force category because the
person is not more willing to do a job. Therefore, unemployment rate decreases.
The retirement of Person AA also reduces the labor force, which means that now
less adult population will participate as a labor force. Therefore, Labor-Force
Participation reduces.
d. Mrs. D quit her job to stay-at-home mom, in such case Mrs. D becomes
unemployed and this increases the unemployment rate. Mrs. D become the stay-at-
home mom which shows that she is not more willing to do a job. This reduces the
number of labor force available. Therefore, this reduces the Labor-Force
Participation from the Total Adult Population.
e. Person S has a birthday on that date the pecomes an adult but the Person SS is
not willing to do a job. So, Person S will not consider as a labor force. Person SS
has no interest in working then this has no effect the unemployment. Therefore, the
Unemployment rate will have no effect. sine, Person S will not consider in the
labor force. Thus, this has no effect the Labor-Force Participation.
f. Person J becomes an adult on the last birthday and starting looking for the job.
Person J is willing to do a job but till will now not get any job. Till the Person will
get the job will consider as unemployed. Therefore, this will increase the
unemployment rate. Person J will become the unemployed part of the labor force
on the birthday. This increases the Labor-Force Participation from the adult
population.
g. Person C dies while enjoyment of their retirement. Since Person C was not the
part of the labor force when the person gets retired. So, the death of the Person will
not have an effect on the employment rate. Therefore, the Unemployment rate has
no effect. Person C was not the part of the labor force. Their retirement had
effected the Labor-Force Participation but the death after retirement make no effect
on the Labor-force Participation.
h. Person J dies while working this reduces the labor force but no increase in the
unemployment. This creates a minimal rise in the unemployment rate. The death of
Person J while working will reduce the labor force, which reduces the Labor-Force
Participation from the Adult Population.
5,
a. When an auto company goes bankrupt and the labors working in the company
are immediately looking for jobs, then it leads to increase of the unemployed
persons and reduces the employed persons. Thus, Unemployment rate increases
and employed population ratio decreases.
b. If some of the auto company workers stop searching jobs, then it leads to
increase of the unemployed persons and there is no change in the employed
persons. Thus, uneloyment ratio increases and employed population ratio remain
unchanged.
c. When numerous college graduates are searching for jobs and not able to find,
then it leads to increase of the unemployed persons and there is no change in
employed persons. Thus, unemployment ratio increases and employed population
ratio remains unchanged.
d. When numerous college graduates are getting job, then it leads to decrease of
the unemployed persons and increases employed persons. Thus, unemployment
ratio decreases and employed population ratio increases.
e. When a person retires in earlier age, then it leads to increase of the number of
unemployed persons and decreases the employed persons. Thus, unployment ratio
increases and employed population ratio decreases.
f. When advances in health care prolong the life of retired people, it will not
change the number of unemployed people or employed people. Whereas, it leads to
increase in the population. Thus, unemployment ratio remains unchanged and
employed population ratio decreases.
6,
a. A construction worker laid off because of bad weather' is more likely to
experience short- term unemployment as the weather is not constant and is
subjected to be normal again.
b. A manufacturing worker who loses her job at a plant in an isolated area'
indicates that there are no manufacturing companies located near or around. So, it
is likely that the manufacturing worker faces a long-term unemployment as he/she
need to search for a job in another location as the current working location is
isolated.
c. A stagecoach-industry worker laid of because of competition from the railroads'
indicates that the worker has to face a long-term unemployment due to the
competition prevailing in the industry.
d. 'A short-order cook who loses his job when a new restaurant opens across the
street is likely to face short term unemployment as there is an opportunity to get
the job in the newly opened restaurant.
e. An expert welder with little formal education who loses her job when the
company installs automatic welding machinery' is likely to face long term
unemployment as she is not well educated to operate the newly installed automatic
welding equipment.
9,
a. As the two industries require similar amounts of training, the worker can choose
either of the industries at the beginning of his career for paining bit, aircraft
manufacturing involves more proficiency and skill as it involves more parts and
legates in its manufacturing when compared to auto manufacturing Hence, for the
worker can choose for aircraft manufacturing for his training It is expected that the
wages between the two industries would be same. If not, new workers would
choose the industry with the higher amount of wage, pushing the wage in that
industry down.
b. If the economy opens to international trade and begins importing autos, the
demand for labor in the auto manufacturing would fall.If the economy opens to
international trade and begins to export aircraft, there would be an increase in the
demand for labor in the aircraft industry.
c. If the workers of one industry could not be quickly retrained for the other, then
the shift in the demand would result in the increase in the aircraft industry and the
wages in the auto industry would fall in the short run. In the long run, due to the
high wages, more and more new workers join the aircraft industry and hence the
wages would fall until wages are equal across the two industries.
d. If for some reason, the wages fail to adjust to the new equilibrium, then there
would be a deficit or shortage of workers Rl aircraft industry and surplus of
workers in auto industry resulting in unemployment.
10,
a. This will decrease the demand for labor.
b. The supply of labor will increase.
c. The wage will become W−$4 and the level of employment will not change.
d. Demand for labor will further decrease causing higher unemployment.
e. Employees will be worse off because they do not value the mandate but still
must take a pay cut, employers will be worse off because they have to pay a greater
total amount when including the benefits.