Question

refer to the table below. calculate the u - 5 unemployment rate. part - time employed for economic reasons 22 million full time employed 78 million unemployed 12 million discouraged 4 million other marginally attached 3 million not in the labor force 30 million 16% 10.7% 13.8% 20.2%

Explanation:

Step1: Define U - 5 components

The U - 5 unemployment rate includes the unemployed, discouraged workers, and other marginally attached workers in the numerator, and the labor force plus discouraged workers plus other marginally attached workers in the denominator. The labor force is the sum of the employed (full - time and part - time) and the unemployed.
Employed = Part - time employed+Full - time employed = 22 + 78=100 million.
Labor force = Employed+Unemployed = 100 + 12 = 112 million.

Step2: Calculate numerator

Numerator = Unemployed+Discouraged+Other marginally attached = 12+4 + 3=19 million.

Step3: Calculate denominator

Denominator = Labor force+Discouraged+Other marginally attached = 112+4 + 3=119 million.

Step4: Calculate U - 5 rate

U - 5 rate=$\frac{19}{119}\times100\%\approx16\%$.

Answer:

16%