1) Compute various indicators of the state of the labour market using the following information. Please show all of your working. If you do not, you will receive zero marks for the question(s).
Demographic Group Number of Residents
Full-time workers 7000
Part-time workers 2000
Unemployed and looking for work 600
Unemployed and not looking for work due to 500
discouragement over job prospects
Not working due to disability 300
Not working due to retirement 900
Under the age of 15 3000
Total Population 14300
a) What is the size of the labour force in this economy?
b) Calculate the Labour Force Participation Rate for this economy. Report as a percentage to two decimal places.
c) Calculate the Unemployment Rate for this economy. Report as a percentage to two decimal places.
d) Suppose that the natural rate of unemployment is considered to be 5%. What is the rate of cyclical unemployment? Report as a percentage to two decimal places.