The Bureau of Labor Statistics reported that in
June 2004, the labor force was 149.2149.2 million, employment was
140.7140.7 million, and the working-age population was 223.4223.4
million.
Calculate the unemployment rate and the labor force participation rate for that month.
To calculate the unemployment rate and the labor force participation rate, we need to use the given information.
The labor force participation rate (LFPR) is the percentage of the working-age population that is either employed or actively seeking employment. It is calculated by dividing the labor force by the working-age population and then multiplying by 100.
LFPR = (Labor Force / Working-age Population) * 100
Substituting the given values:
LFPR = (149.2 million / 223.4 million) * 100
Calculating the LFPR:
LFPR = (0.668) * 100
LFPR = 66.8%
The unemployment rate is the percentage of the labor force that is unemployed. It is calculated by dividing the number of unemployed individuals by the labor force and then multiplying by 100.
Unemployment Rate = (Unemployed / Labor Force) * 100
To find the number of unemployed individuals, we subtract the number of employed individuals from the labor force.
Unemployed = Labor Force - Employed
Unemployed = 149.2 million - 140.7 million
Calculating the Unemployment Rate:
Unemployment Rate = ((149.2 million - 140.7 million) / 149.2 million) * 100
Simplifying the equation:
Unemployment Rate = (8.5 million / 149.2 million) * 100
Calculating the Unemployment Rate:
Unemployment Rate = 5.7%
Therefore, the unemployment rate for June 2004 was 5.7% and the labor force participation rate was 66.8%.