Calculate the unemployment rate for collegeville

Reference no: EM133438898

Case Study: Suppose that data below corresponds to the small nation of Collegeville with a population of 3,200 people. Of the 3,200 residents 689 are under 16 years of age, and 349 are institutionalized adults. Of the remaining residents, 451 are without jobs and have given up searching for a job, 240 do not have a job, but are actively seeking work, 351 work part time, and the rest work full time. Over the years, the natural rate of unemployment has been found to be 8%. In 2018 the Cost of the Market Basket was $2,340.00. In 2019 the Cost of the Market Basket was $2,855.00. In 2020 the Cost of the Market Basket was $3,230.00.

Questions: How many discouraged workers does Collegeville currently have? Is this group considered to be in the Labor Force? Why or why not?

1. Calculate the unemployment rate for Collegeville. Round the percentage to one decimal place; that is, 4.36% is 4.4%.

2. Once you have calculated the current unemployment rate in Collegeville, what is the corresponding "employment rate". In other words, which proportion of the labor force is considered employed?

3. Explain the relationship or connection between the Natural Rate of unemployment and the concept of Full Employment?

4. According to the data, is the economy of Collegeville performing at, above or below full employment? Explain.

Reference no: EM133438898

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