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Suppose that the unemployment rate is 5%, the total working age population is 400 million, and the number of unemployed is 7.5 million. Determine the employment-population ratio. (Write the answer without the percentage sign. If your answer is XX.y%, write XX.y)

Question

Suppose that the unemployment rate is 5%, the total working age population is 400 million, and the number of unemployed is 7.5 million. Determine the employment-population ratio. (Write the answer without the percentage sign. If your answer is XX.y%, write XX.y)

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Solution

The employment-population ratio is calculated as the number of employed individuals divided by the total working-age population, then multiplied by 100 to get a percentage.

First, we need to find the number of employed individuals. We know that the total number of unemployed individuals is 7.5 million and the unemployment rate is 5%.

The unemployment rate is calculated as the number of unemployed individuals divided by the total labor force (employed + unemployed), so we can set up the equation:

5 = (7.5 million / total labor force) * 100

Solving for the total labor force gives us:

total labor force = 7.5 million / (5/100) = 150 million

Now, we can find the number of employed individuals by subtracting the number of unemployed from the total labor force:

number of employed = total labor force - number of unemployed = 150 million - 7.5 million = 142.5 million

Finally, we can calculate the employment-population ratio:

employment-population ratio = (number of employed / total working-age population) * 100

employment-population ratio = (142.5 million / 400 million) * 100 = 35.625

So, the employment-population ratio is 35.625.

This problem has been solved

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