Natural rate of unemployment

Reference no: EM1373825

In August 2002, preliminary information showed that payroll employment increase 39,000, household employment increase 429,000, and the unemployment rate fell from 5.9 percent to 5.7 percent.
A. Based on these data, what conclusion would you reach about the current employment situation?

B. How would your answer change if you also noted that (a) the unemployment rate for men 20 years and over was unchanged, and (b) the number of initial unemployment claims rose from 386,000 to 398,000.

C. How would your answer change if you also noted that the biggest declines in the unemployment rate occurred in (a) teenagers, and (b) experienced wage and salary workers?

D. Based on this welter of confusing information - which is not unusual - what conclusions can be drawn about basing business plans on the latest monthly employment and unemployment data?

Reference no: EM1373825

Questions Cloud

Compute the natural rate of unemployment : Suppose if the economy currently has a frictional unemployment rate of 2%, structural unemployment of 2%, seasonal unemployment of 0.5%, and cyclical unemployment of 2%, determine the natural rate of unemployment?

Stock market price quotations : Suppose the economy is in the midst of a severe recession. Determine which of the following policies would be consistent with active fiscal policy?

Compute labor force participation rate : The Bureau of Labor Statistics reported that in January 2000 total labor force was 140,910,000 of a possible 208,782,000 working age adults.

Natural rate of unemployment : In August 2002, preliminary information showed that payroll employment increase 39,000, household employment increase 429,000, and the unemployment rate fell from 5.9 percent to 5.7 percent.

Describe an organization staffing practices : Explain an organization's staffing practices and selection tools in response to two of following trends:

Expected effects on labor force participation : Think a nation with no income maintenance program that enacts an Earned Income Tax Credit similar to United States.

Substitution effect change firm employment and capital stock : Suppose a company where production depends on two inputs: labor and capital, with prices w and r, respectively. Initially, the company faces market values of w=6 and r=4.

Detectable impact on employment : Currently, the island of Guam does not have a minimum wage need but uses the United States minimum wage as a reference. Give a theoretical justification for why imposition of a $5.15 minimum wage.

User Account

All Pages