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In year 2007, the population of island I is 150, 000, of which 100,000 are aged 16 or older. Of this 100,000 people, 60,000 have jobs (40,000 do not). 20,000 are unemployed but actively seeking employment and there are 20, 000 who have given up the job search in frustration.
The employment rate is? What is the labor force participation?
In year 2008, the economy of the island moves out of a long recession and job openings increases. As a result, 5000 discouraged workers become encouraged and begin searching for jobs.
What is the unemployment rate in 2008? And, what can you conclude?
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