Question

Answer the following questions about your own experience in the labor force.

a. When you or one of your friends is looking for a part-time job, how many weeks does it typically take? After you find a job, how many weeks does it typically take?
b. From your estimates, calculate (in a rate per week) your rate of job finding, f, and your rate of job separation, s. (Hint: If f is the rate of job finding, then the average spell of unemployment is 1/f.)
c. What is the natural rate of unemployment for the population you represent?

Answer 1

Answer:

Following are the solution to this question:

Explanation:

In point a:

This takes me six weeks for both the took ideas that I was searching for but it continued for 3 years (12 weeks) as it's an intern.  

In point b:

Finding job:

$\to f = \frac{1}{6} = 0.166$ jobs weekly  

Separation of jobs:

$\to \frac{ 1}{12}=0.083$ employment per week.  

In point c:

Its natural rate of unemployment is:  $\frac{U}{L} = s+(s \times f)$.  

The normal level of employment for that community I represent, once we add up from that preceding section, is as follows:

$\to \frac{U}{L} = 0.083+ (0.083\times 0.166) = 0.096$

If on average, it requires six weeks to find another job or the work lasted 12 weeks, the group's unemployment level is $0.096 \ \%$.