If the number employed is 12 million, the working-age population is 16 million, and the number unemployed is 0.7 million, then the unemployment rate is —.Group of answer choices5.51%5.17%3.75%12%
Question
If the number employed is 12 million, the working-age population is 16 million, and the number unemployed is 0.7 million, then the unemployment rate is —.Group of answer choices5.51%5.17%3.75%12%
Solution
The unemployment rate is calculated as the number of unemployed people divided by the total number of people in the labor force (the sum of employed and unemployed people), then multiplied by 100 to get a percentage.
Step 1: Calculate the total labor force. The labor force is the sum of the number of people employed and the number of people unemployed. So, 12 million (employed) + 0.7 million (unemployed) = 12.7 million (labor force).
Step 2: Calculate the unemployment rate. The unemployment rate is the number of unemployed people divided by the total labor force, then multiplied by 100. So, (0.7 million / 12.7 million) * 100 = 5.51%.
Therefore, the unemployment rate is 5.51%.
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