In 2018 the Bureau of Labor Statistics reported that there were 57.4 million people over age 25 whose highest level of education was some college or an associate degree. Of these, 36.3 million were employed and 1.2 million were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

Question

a. 65.3% and 3.2%
b. 63.2% and 3.2%
c. 65.3% and 2.1%
d. 63.2% and 2.1%

Answer 1

To find the labor-force participation rate and the unemployment rate for the group, we need to understand the definitions of these rates.

1. Labor-Force Participation Rate (LFPR) is calculated as follows: \[ \text{LFPR} = \frac{\text{Labor Force}}{\text{Eligible Population}} \times 100 \] where the Labor Force is the sum of employed and unemployed individuals.

2. Unemployment Rate (UR) is calculated as follows: \[ \text{UR} = \frac{\text{Number of Unemployed}}{\text{Labor Force}} \times 100 \]

From the data provided:

• People with some college or an associate degree (eligible population) = 57.4 million
• Employed (E) = 36.3 million
• Unemployed (U) = 1.2 million

Calculating the Labor Force: \[ \text{Labor Force} = \text{Employed} + \text{Unemployed} = 36.3 \text{ million} + 1.2 \text{ million} = 37.5 \text{ million} \]

Calculating the Labor-Force Participation Rate (LFPR): \[ \text{LFPR} = \frac{37.5 \text{ million}}{57.4 \text{ million}} \times 100 \approx 65.3% \]

Calculating the Unemployment Rate (UR): \[ \text{UR} = \frac{1.2 \text{ million}}{37.5 \text{ million}} \times 100 \approx 3.2% \]

Final Rates:

• Labor-Force Participation Rate = 65.3%
• Unemployment Rate = 3.2%

So the correct answer is: a. 65.3% and 3.2%