November Jobs Report

EconEye Admin

4 years ago

U.S. employers added 263,000 jobs in November as hiring remained sturdy. The unemployment rate held steady at 3.7% but the labor force participation rate edged down to 62.1%, leaving it well below the pre-pandemic level of 63.4%.—USA Today

Answer the following questions to check your understanding of the story.

What does the unemployment rate measure and how can it remain steady when jobs are added?

The unemployment rate measures the percentage of the ____________ that is unemployed. It can remain steady when jobs are added if ____________.

a) labor force; the number unemployed and the labor force increase by the same percentage

b) labor force; all the new jobs are filled by the unemployed

c) working-age population; all the new jobs are filled by the unemployed

d) working-age population; the number unemployed and the labor force increase by the same percentage

Wrong! - Does the unemployment rate measure the percentage of people in the working-age population or in the labor force who are unemployed? If the number unemployed changes, how must the number in the labor force change to keep the unemployment rate steady?

Well Done! - The unemployment rate is the percentage of the people in the labor force who are unemployed, calculated as the number of people unemployed divided by the labor force, all multiplied by 100. If the number unemployed and the labor force increase by the same percentage, the unemployment rate remains steady.

What does the labor force participation rate measure and how can it fall when jobs are added?

The labor force participation rate measures the percentage of the working-age population who are ____________. It falls when jobs are added if the working-age population increases by a larger percentage than the increase in the ____________.

a) employed or unemployed; labor force

b) employed; number employed

c) employed; labor force

d) employed or unemployed; number employed

Wrong! - How is the labor force participation rate calculated? Who are the members of the labor force? Why might the size of the labor force decrease?

Correct! - The labor force participation rate measures the percentage of the working-age population who are members of the labor force, and the labor force is the sum of the employed and unemployed. When the working-age population increases by a larger percentage than the increase in the labor force, the labor force participation ratio decreases.

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