Strong US Job Growth Persists

EconEye Admin

3 years ago

The unemployment rate rose to 3.6% in February from 3.4% in January. The increase occurred as the labor force increased by 419,000, lifting the participation rate to 62.5%, from 62.4% in January.—reuters.com

Additional Data: In February 2023, the size of the labor force was 166,251,000.—Bureau of Labor Statistics

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

What was the working-age population and how many people were unemployed in February?

In February, the working-age population was ___________, and ___________ people were unemployed.

a) 266.4 million; 9.06 million

b) 266.4 million; 5.65 million

c) 266.0 million; 9.58 million

d) 266.0 million; 5.99 million

Wrong! - The labor force participation rate is the percentage of the working-age population who are members of the labor force. In February, the labor force is 166,251,000 and the labor force participation rate is 62.5 percent. How do we use this information to find the working-age population?

The unemployment rate is the percentage of the labor force who are unemployed. In February, the labor force is 166,251,000 and the unemployment rate is 3.6 percent. How do we use this information to find the number unemployed?

Correct! - The labor force participation rate is the percentage of the working-age population who are members of the labor force. In February, the labor force is 166,251,000 and the labor force participation rate is 62.5 percent, so the working-age population is 166,251,000 ÷ 0.625, which is 266.0 million. The unemployment rate is the percentage of the labor force who are unemployed. In February, the labor force is 166,251,000 and the unemployment rate is 3.6 percent, so the number of people unemployed is 0.036 × 166,251,000, which is 5.99 million.

What was the employment-to-population ratio in February?

The employment-to-population ratio was ____________.

a) 39.8 percent

b) 60.2 percent

c) 96.4 percent

d) 62.5 percent

Wrong! - The employment-to-population ratio is the percentage of the working-age population that are employed. In February, the labor force is 166.25 million and the number unemployed is 5.99 million. What is the number employed? What is the working-age population? How do you calculate the employment-to-population ratio with this information?

Good Job! - The employment-to-population ratio is the percentage of the working-age population that are employed. In February, the labor force is 166.25 million and the number unemployed is 5.99 million, so the number employed is 166.25 million –99 million, which is 160.26 million. The working-age population is 266 million, so the employment-to-population ratio is (160.26 million ÷ 266 million) × 100, which is 60.2 percent.

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