Given a total population of 5,000 residents and a labor force of 4,000 residents, 3,500 of which are employed, what is the unemployment rate?(1 point)

Question

Responses

70%
70 percent

12.5%
12.5 percent

10%
10 percent

87.5%

Answer 1

To calculate the unemployment rate, we need to determine the number of unemployed residents and then divide that by the total labor force, expressing it as a percentage.

1. Calculate the number of unemployed residents:

   • Total labor force = 4,000
   • Employed residents = 3,500
   • Unemployed residents = Total labor force - Employed residents = 4,000 - 3,500 = 500

2. Calculate the unemployment rate:

   • Unemployment rate = (Number of unemployed / Total labor force) × 100
   • Unemployment rate = (500 / 4,000) × 100 = 12.5%

So, the unemployment rate is 12.5%.