Question 1

A weakness that could be noted about the unemployment rate is that it

Accepted Answer

The unemployment rate does not account for the underutilization of workers, such as those who are working part-time but would prefer full-time employment or those who are overqualified for their current positions. This can lead to an underestimation of the true level of economic distress within the labor market.

Question 2

Who of the following would be classified as employed in the Labour Force Survey?

Accepted Answer

B

Question 3

The working-age population includes

Accepted Answer

The working-age population typically refers to the total number of civilians aged 15 years and over, as this group encompasses the majority of individuals who are legally eligible to work in most countries.

Question 4

Suppose the working-age population is 50 million, the labour force is 20 million, and the unemployment rate is 15 per cent. The number of unemployed people is

Accepted Answer

The answer of Suppose the working-age population is 50 million,...

Question 5

In January of 2019, the number of employed persons in Australia was 11.7 million, the number of unemployed persons was 0.8 million, and the number of persons not in the labour force was 6.7 million. What was the working-age population in January of 2019?

Accepted Answer

The working-age population is the sum of the employed, unemployed, and not in the labour force populations. So, the working-age population in January of 2019 was 11.7 million + 0.8 million + 6.7 million = 19.2 million.

Question 6

If a significant number of part-time workers successfully find full-time employment, then

Accepted Answer

Part-time workers are already counted as employed, so their shift to full-time employment does not affect the unemployment rate.

Question 7

Which of the following persons is NOT considered a part of the labour force?

Accepted Answer

Brittany, who has taken early retirement, is not considered part of the labour force because she is not actively working or looking for work.

Question 8

In January 2019, the population of Australia was 23.7 million, the working-age population was 19.2 million, the total number of people employed and unemployed was 12.5 million, and the total number of unemployed people was 0.8 million. What is the unemployment rate?

Accepted Answer

The unemployment rate is calculated as the number of unemployed people divided by the labor force (employed + unemployed) times 100. Therefore, the unemployment rate is $ \frac{0.8}{12.5} \times 100 = 6.4\% $.

Question 9

If Jose is 22-years old and available to work but does not have a job and made no specific efforts to find a job for the previous month, Jose is classified in the Labour Force Survey as

Accepted Answer

Jose is considered not in the labour force because he is available to work but has not made any specific efforts to find a job in the previous month.

Question 10

The labour force includes civilians who
i. are less than 15 years of age.
ii. are employed.
iii. are actively seeking a job but do not have a job.

Accepted Answer

The labor force includes individuals who are employed (ii) and those who are unemployed but actively seeking work (iii). Individuals less than 15 years of age are generally not considered part of the labor force.

Question 11

In January of 2019, the population of Australia was 23.7 million, the working-age population was 19.2 million, the total number of people employed was 11.7 million, and the total number of people unemployed was 0.8 million. What was the labour force participation rate?

Accepted Answer

The answer of In January of 2019, the population of...

Question 12

After graduating from university, Yunis, age 22, started working for his parents' real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units. In the Labour Force Survey, Yunis is considered

Accepted Answer

Yunis is considered part of the labour force and employed because he is working, even if it is unpaid work for a family business. The key criteria for being classified as employed in labor force surveys typically include performing work for pay or profit, which can include unpaid family work.

Question 13

Assume the Australian population is 30 million. If 20 million people are of working age, 12.5 million are employed, and 1.5 million are unemployed, what is the size of the labour force?

Accepted Answer

The labour force includes both employed and unemployed individuals who are of working age and actively seeking employment. Therefore, the size of the labour force is the sum of employed and unemployed individuals, which is 12.5 million + 1.5 million = 14 million.

Question 14

Ashleigh is a 26-year old who works 25 hours per week at a local café but, because of unfavourable business conditions, cannot find full-time employment. The Labour Force Survey identifies Ashleigh as ________, ________ the labour force, and ________ the working-age population.

Accepted Answer

Ashleigh is considered an underemployed worker because she is working less than full-time hours and desires more work but cannot find it due to external conditions. She is part of the labour force because she is working, and she is part of the working-age population due to her age.

Question 15

The unemployment rate equals

Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed individuals by the labor force (which includes both employed and unemployed individuals) and then multiplying the result by 100 to get a percentage.

Question 16

If the number of employed people is 15 million, the number of unemployed people is 5 million, and the working-age population equals 28.5 million people, the labour force participation rate is

Accepted Answer

The labour force participation rate is calculated by dividing the labour force (the sum of employed and unemployed people) by the working-age population and then multiplying by 100 to get a percentage. Here, the labour force is 15 million (employed) + 5 million (unemployed) = 20 million. The working-age population is 28.5 million. So, the labour force participation rate is (20 million / 28.5 million) * 100 = 70.2 per cent.

Question 17

The Australian Bureau of Statistics (ABS) compiles information about employment by

Accepted Answer

The Australian Bureau of Statistics (ABS) compiles information about employment by performing a monthly survey of 27,000 households. This method allows the ABS to gather timely and relevant data on employment trends and statistics across the country.

Question 18

If Brian, age 24, had no job but was available for work and had looked for a job in the four weeks before the survey, Brian is classified in the Labour Force Survey as

Accepted Answer

Brian is classified as unemployed because he is without a job, available for work, and has actively looked for work in the past four weeks. This is the standard definition used in labor force surveys to classify individuals as unemployed.

Question 19

If the number of people in the labour force ________, then ________.

Accepted Answer

The labour force participation rate is defined as the portion of the working-age population that is either employed or actively seeking employment. Therefore, if the number of people in the labour force increases, it means a higher proportion of the working-age population is either working or looking for work, which directly leads to an increase in the labour force participation rate.

Question 20

A marginally attached worker is

Accepted Answer

A marginally attached worker is defined as someone who is not currently working but is willing and able to work, has looked for work in the recent past (but not in the last 4 weeks), and is therefore not counted as unemployed in labor force statistics. This differentiates them from the unemployed, who have actively looked for work in the past 4 weeks.

Quiz 6: Jobs and Unemployment