Impact of Unemployment Quick Check

Question

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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)
Responses

70%
70 percent

12.5%
12.5 percent

10%
10 percent

87.5%
87.5 percent
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Answer 1

To calculate the unemployment rate, use the formula:

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

In your case:

• Total population = 5,000
• Labor force = 4,000
• Employed = 3,500

First, calculate the number of unemployed residents:

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

Now, plug the numbers into the unemployment rate formula:

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

Therefore, the unemployment rate is 12.5%.