Consider Netflixalia's 5 million residents. Of these 5 million people, in 2021: 3 million are working full-time. 300,000 are working part-time. 600,000 are under the age of 16. 400,000 are retired. 500,000 are unemployed and actively looking for work. The remainder are not working and not looking for work (i.e., full-time students or stay-at-home parents).The unemployment rate is blank1 - Numeric Answer% (in percentage).The labor force of this economy is blank2 - Numeric Answer millions.
Question
Consider Netflixalia's 5 million residents. Of these 5 million people, in 2021: 3 million are working full-time. 300,000 are working part-time. 600,000 are under the age of 16. 400,000 are retired. 500,000 are unemployed and actively looking for work. The remainder are not working and not looking for work (i.e., full-time students or stay-at-home parents).The unemployment rate is blank1 - Numeric Answer% (in percentage).The labor force of this economy is blank2 - Numeric Answer millions.
Solution
The unemployment rate and labor force can be calculated as follows:
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The labor force is the sum of all individuals who are either employed or actively looking for work. In this case, it includes those working full-time (3 million), those working part-time (300,000), and those unemployed and actively looking for work (500,000).
Labor force = 3,000,000 (full-time workers) + 300,000 (part-time workers) + 500,000 (unemployed and actively looking for work) Labor force = 3,800,000
So, the labor force of this economy is 3.8 million.
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The unemployment rate is the percentage of the labor force that is unemployed and actively looking for work.
Unemployment rate = (Number of unemployed / Labor force) * 100 Unemployment rate = (500,000 / 3,800,000) * 100 Unemployment rate = 13.16%
So, the unemployment rate is 13.16% and the labor force of this economy is 3.8 million.
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