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

12.5%
12.5 percent

70%
70 percent

10%
10 percent

87.5%
87.5 percent

Answer 1

To calculate the unemployment rate, you can use the formula:

\[ \text{Unemployment Rate} = \frac{\text{Number of Unemployed}}{\text{Labor Force}} \times 100 \]

1. Determine the number of unemployed:

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

2. Now, calculate the unemployment rate: \[ \text{Unemployment Rate} = \frac{500}{4,000} \times 100 = 12.5% \]

So, the unemployment rate is 12.5% or 12.5 percent.

The correct response is: 12.5% or 12.5 percent.