Question

A survey showed that in each of the past 12 months there was one person who was unemployed who worked in all other months. There were also two people who were unemployed for all 12 months. What percentage of the unemployment spells during the year was short term, and what percentage of the unemployment in a given month was long term?

Answer 1

Answer:

Short-term unemployment rate  = 87.5%

Long-term unemployment rate = 66.7%

Explanation:

Given:

In past 12 months there was one person that remains unemployed each month.

that means a person is employed for eleven months and one month unemployed

So there will be 12 different persons according to the above condition

also,

there are 2 persons who remained unemployed for all 12 months

Thus,

Total number of unemployed person = 12 + 2 = 14

Total number of unemployed person each month = 2 + 1 = 3

Now,

short-term unemployment rate

= $\frac{\textup{Individuals remained unemployed for a month}}{\textup{Total unemployed people}}\times100$

or

= [ 12 ÷ 14 ] × 100%

=  87.5%

Long-term unemployment rate

=  $\frac{\textup{Individuals remained unemployed for all 12 months}}{\textup{Total unemployed people each month}}\times100$

= [ 2 ÷ 3 ] × 100 %

= 66.7%