The Employment Situation—May 2023

EconEye Admin

3 years ago

The unemployment rate in May increased by 0.3 percentage points over April to 3.7 percent. The number of unemployed persons rose by 440,000 to 6.1 million but the number employed decreased by 310,000. The labor force participation rate held at 62.6 percent in May.—bls.gov

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

How did the labor force change between April and May 2023?

a) The labor force decreased by 130,000.

b) The labor force increased by 130,000.

c) The labor force remained constant.

d) The labor force decreased by 310,000.

Wrong! - How is the labor force calculated? How do changes in the number employed and the number unemployed influence the labor force?

Correct! - The labor force is the sum of the people employed and the people unemployed. The number of unemployed persons increased by 440,000 and the number of employed persons decreased by 310,000 so the labor force increased by 130,000.

How did the employment-to-population ratio change in May 2023?

The employment-to-population ratio ____________.

a) increased because employment decreased by less than the working-age population decreased

b) didn’t change because the labor force participation rate didn’t change

c) decreased because employment decreased and the working-age-population increased

d) decreased because employment decreased by more than the working-age population decreased

Wrong! - How is the employment-to-population ratio calculated? Employment decreased. What other information do we need?

Good Job! - The labor force increased and the labor force participation rate didn’t change, so the working-age population must have increased. With the decrease in employment, it must be the case that the employment-to-population ratio decreased.

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