Question

Krono's economy has the population divided among the following groups: 63 have full-time jobs, 9 have one part-time job, 9 have two part-time jobs, 15 would like to work and are looking for jobs, 14 would like to work but are so discouraged they have given up looking, 19 are running their own businesses, 15 are retired, and 31 are small children. Calculate the labor force.

Answer 1

Labour force is made up of Employed and Unemployed People.

Unemployed People are those who wants,able and are looking for a job .

Employed people are those who are working for pay or profit . These includes all part time, temporary , regular full time and year round employement.

Those people who are neither Unemployed not employed are excluded from labour force. The one who are excluded from labour force are generally retired workers and school going children.

Now, in order to calculate Labour force let's first categorise the above data into employed and Unemployed People based on the above criterias of Employed and Unemployed People

1) Employed people:

Full time jobs : 63

(Reason: Full time workers are considered employed as they get payment for the work done)

One Part time jobs : 9

( Reason: Part time workers are considered employed as they are paid for their work)

Two part time job : 9

( Reason: Part time workers are considered employed as they are paid for the work done)

Running own business; 19

( Reason: They are considered self employed as they work for Profits)

Therefore,total Employed people= 63+9+9+19= 100

2) Unemployed People:

Want and looking for work : 14

( Reason: Those who are willing ,able and are looking for work will be considered Employed)

Therefore, total Unemployed People= 15

Now, People who are excluded from labour force will constitute:

1) Want but not looking for work. These are the discouraged workers . Since they are not actively looking for job,they are not considered Unemployed.

2) Small children are not included in labour force because they donot fulfill the age criteria and they are also not looking for work.

3) Retired workers are excluded because they do not work and not considered Employed. Also, since they are not available for work, so they are not considered Unemployed as well

Now , Labour force = Employed+ Unemployed

Therefore, Labour force = 100+15 = 115