(1)
Population: 250,000
Unemployed: 20,000
Labor Force Participation Rate: 80%
(a) How many people are in the labor force?
(b) What is the unemployment rate?
(2)
Not in the labor force: 125,000
Unemployed: 25,000
Employed: 100,000
What is the unemployment rate?
2 answers
How many people are in the labor force and what is the unemployment rate?
Assuming that the population includes only those people between 16 and 64, then 200,000 are working or actively looking for a job. The unemployment rate is 20,000 / 200,000 or 10%.
http://economics.about.com/od/unemploymentrate/f/labor_force.htm
http://economics.about.com/od/unemploymentrate/f/labor_force.htm
1 answer