Question

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)

12.5%


10%


70%


87.5%

Answer 1

Unemployment = labor force − employed = 4,000 − 3,500 = 500.
Unemployment rate = 500 / 4,000 = 0.125 = 12.5%.