28. Two Surveys
The Current Population Survey (CPS) "household
survey" Sample of 60,000 households.
The Current Employment Statistics Survey (CES):
"payroll survey" sample of 160,000 businesses and
government agencies that represent 400,000 individual
employees.
30. Population 330
Adults 254
Labor Force 160
Employed 152
Under 16 76
Not in Labor Force 94
8 Unemployed
Employed 152 8
Unemployed
Not in Labor Force 94 Under 16 76
Labor Force
Participation Rate
=
Labor Force
÷
Adults
Unemployment Rate =
Unemployed
÷
Labor Force
Rates
31. 3,000 people live in Pooleynesia. There are
250 people under 16. 450 people are not
in the labor force. 230 people are
unemployed.
1. What is the Labor Force Participation
Rate?
2. What is the Unemployment Rate?
32. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?
10%
90%
4,500
5,000
500
4,500 ÷ .90 = 5,000
33. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?
5%
95%
47,500
50,000
2,500
2,500 ÷ .05 = 50,000
34. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?
3%
97%
19,400
20,000
600
19,400 ÷ .97 = 20,000
20,000 ÷ 30,000 = .67 or 67%
37. 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Year
0
N
1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Year
0
20
40
60
Share
of
the
civilian
labor
force
(%)
Hover over chart to
Adjust year range
data display.
Notes: Includes perso
civilian noninstitution
that are employed or
looking for work. Bas
persons 16 years of a
The comparability of
data has been affecte
times by methodolog
changes in the Curre
Survey.
Source: 1948-2015 a
averages, Current Po
Survey, U.S. Bureau
Statistics
Graph by the Women
Men
Women
39. Frédéric Bastiat
(1801-1850)
There is only one difference between a
bad economist and a good one: the bad
economist con
fi
nes himself to the
visible effect; the good economist takes
into account both the effect than can
be seen and those effects than must be
foreseen.
What is Seen andWhat in Not Seen,
1850
