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

87.5%
87.5 percent

10%

Answer 1

To calculate the unemployment rate, use the formula:

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

First, determine the number of unemployed residents:

\[ \text{Number of Unemployed} = \text{Labor Force} - \text{Employed} = 4,000 - 3,500 = 500 \]

Next, plug the number of unemployed into the unemployment rate formula:

\[ \text{Unemployment Rate} = \frac{500}{4,000} \times 100 = 12.5% \]

Therefore, the unemployment rate is 12.5%.

The correct response is 12.5% or 12.5 percent.