The Employment Situation—June 2023

EconEye Admin

3 years ago

The number unemployed remained at 6.0 million in June, and the unemployment rate fell slightly. The working-age population grew to 266,800 thousand, and the employment-to-population ratio and labor force participation rate remained steady at 60.3 percent and 62.6 percent respectively. Discouraged workers decreased, but those employed part time for economic reasons increased.—bls.gov

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

How many were employed in June 2023 and how did this number change from May?

Between May and June 2023, the number employed _______________.

a) increased to 160 million

b) decreased to 160 million

c) remained constant at 160 million

d) increased to 167 million

Wrong! - How is the employment-to-population ratio calculated? How can the number employed change, but the employment-to-population ratio remain the same?

Well Done! - In June, the number employed was 60.3 percent of the working-age population, which is 160 million. The number in the working-age population increased, and with no change in the employment-to-population ratio it must be the case that the number employed increased.

Why did the unemployment rate fall in June 2023 when the number of unemployed did not change?

The unemployment rate fell because ____________.

a) the increase in the number employed part time for economic reasons increased the labor force

b) the number of discouraged workers decreased

c) the working-age population increased

d) an increase in the number employed increased the labor force

Wrong! - How is the unemployment rate calculated? Why does the unemployment rate decrease?

Good Job! - The unemployment rate is the percentage of the labor force that is unemployed. With no change in the number unemployed, it must be the case that the labor force increased. This occurred because the number employed increased.

Share this: