Part A Labour Force Statistics

The working-age population is 29,000,000. Of these, 16,000,000 people had jobs. Of the remainder, 1,500,000 were looking for work, 1,700,000 wanted to work but did not actively look for work, and 9,800,000 did not want to work. Calculate the following statistics:

a.Calculate the following statistics to 2 decimal places and show your work. (2 marks - 1/2 mark each)

1.The labour force.

2.The number of people not in the labour force.

3.The labour force participation rate.

4.The unemployment rate.

b.What type of unemployment are the following workers experiencing? Explain your choices. (3 marks - mark each)

1.Factory workers are laid off when the factory was closed permanently because the company has found that it is cheaper to have the product made in China.

2.Jerrod is fired for being late to work too many times.

3.Humber College students graduate in May and are looking for work.

4.Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars are not selling well. GM isn't sure when the plant will reopen.

5.When the snow melts at Blue Mountain, in Collingwood, Ontario, Tristan, a ski instructor, is laid off his job until next December.

6.Mexico can produce vine-ripened tomatoes at a lower opportunity cost than firms in the United States. Through trade negotiations, the United States lifted quotas limiting the import of tomatoes from Mexico. Some firms in Florida, in the face of this new competition, had to close their farms and let their workers go.

c.Can unemployment be zero? Explain(1 mark)

d.Define and provide an example of labour hoarding. (1 mark)

Part B

a.Using the following information, calculate to two decimal places, the percent increase of real wages. (2 marks)

Nominal Wage Index142.3

CPI138.4