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Many young, inexperienced workers begin their career in the unskilled labor market. Some remain unemployed and some get a job-either full time or part time.
Task:
The graph below represents the market for unskilled labor. Answer the following question based on the graph shown below:
1. If the wage is not allowed to fall below $10 per hour, how many unskilled workers are unemployed?
2. The labor force is simply the number of employed workers plus the number of unemployed workers. At a minimum wage of $10 per hour, what is the size of the unskilled labor force?
3. Recall the calculation for the unemployment rate: unemployment rate = (unemployed/number of worker in the labor force). At a minimum wage of $10 per hour, what is the unemployment rate among unskilled workers?
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