December Jobs Report

EconEye Admin

2 years ago

The labor market added 216,000 jobs in December. The Bureau of Labor Statistics showed the unemployment rate was 3.7% for the month, flat from the rate in November. The labor force participation rate ticked lower to 62.5%, down from 62.8%. Average weekly hours worked moved down slightly from 34.4 to 34.3.—finance.yahoo.com

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

Why was December’s unemployment rate unchanged from November?

December’s unemployment rate was unchanged from November’s unemployment rate because ______________.

a) 216,000 people entered the labor force

b) the number unemployed did not change

c) the percentage increases in the labor force and in the number unemployed were equal

d) the increases in the labor force and in the number unemployed were equal

Wrong! - How is the unemployment rate calculated? Why does the unemployment rate change and when does it remain the same?

Correct! - The unemployment rate is the percentage of people in the labor force who are unemployed. When the percentage increases in the labor force and in the number unemployed are equal, the unemployment rate remains unchanged.

What does the decrease in the labor force participation rate tell us?

The decrease in the labor force participation rate tells us that _____________.

a) the percentage increase in the working-age population exceeded the percentage increase in the labor force

b) the employment-to-population rate also decreased

c) the percentage increase in the labor force exceeded the percentage increase in the working-age population

d) the sum of unemployed and employed decreased

Wrong! - How is the labor force participation rate calculated? What information does this calculation give us?

That's Right! - The labor force participation rate is the percentage of people in the working-age population who are also members of the labor force. When the labor force participation rate decreases, then the percentage increase in the working-age population exceeds the percentage increase in the labor force.

Share this: