Employment Dynamics and the Role of Labor Force Participation: Data suggests that nearly half of all people that become employed enter employment from being out of the labor force, not necessarily from unemployment.

Consider the employment dynamics model, where L₄ = 660, the finding rate is 17%, and the separation rate is 3%. For now, assume L₄ = L_t + 1. If the unemployment rate is currently 5%, how many people will be employed in period t + 1 and what will the unemployment rate be in t+1?