Question

Say a certain manufacturing industry has 63.1 thousand jobs in 2008, but is expected to decline at an average annual rate of 1.7 thousand jobs per year from 2008 to 2018. Assuming this holds true, what will be this industry’s percent change from 2008 to 2018?
a.
70%
b.
-27%
c.
-17%
d.
-75%

Answer 1

To calculate the percent change in the number of jobs in the manufacturing industry from 2008 to 2018, we can follow these steps:

1. **Determine the number of jobs lost by 2018:**
\[
\text{Number of years from 2008 to 2018} = 2018 - 2008 = 10 \text{ years}
\]
\[
\text{Total job decline} = 1.7 \text{ thousand jobs/year} \times 10 \text{ years} = 17 \text{ thousand jobs}
\]

2. **Calculate the number of jobs in 2018:**
\[
\text{Jobs in 2018} = 63.1 \text{ thousand jobs} - 17 \text{ thousand jobs} = 46.1 \text{ thousand jobs}
\]

3. **Calculate the percent change:**
\[
\text{Percent change} = \left(\frac{\text{Jobs in 2018} - \text{Jobs in 2008}}{\text{Jobs in 2008}}\right) \times 100
\]
\[
\text{Percent change} = \left(\frac{46.1 - 63.1}{63.1}\right) \times 100
\]
\[
\text{Percent change} = \left(\frac{-17}{63.1}\right) \times 100
\]
\[
\text{Percent change} \approx -26.9\%
\]

Rounding to the nearest whole number gives approximately -27%.

The correct answer is **b. -27%**.