Question

Suppose that in the small country of Sociopolis there are 6 million people in the adult population, that the labor-force participation rate is 70 percent, and that there are 3.8 million people employed. To the nearest tenth, what is the unemployment rate

Answer 1

Answer:

9.52%

Explanation:

The computation of the unemployment rate is shown below:-

The population can work = Participation rate × Adult population

= 0.70 × 6,000,000

= 4,200,000

Unemployed labor = 4.2 - 3.8

= 0.4 million

Now

Unemployment rate = Percentage of unemployed ÷ Total employed

= 0.4 - 4.2

=.0952

or

= 9.52%

We simply applied the above formulas