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In Country X, the population is 100 million, 60 million people are employed, 5 million are not employed and looking for work, and 35 million are not employed and not looking for work.What is the unemployment rate in Country X?

Question

In Country X, the population is 100 million, 60 million people are employed, 5 million are not employed and looking for work, and 35 million are not employed and not looking for work.What is the unemployment rate in Country X?

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Solution

The unemployment rate is calculated as the number of unemployed people who are actively looking for work divided by the total labor force (the sum of employed and unemployed individuals).

Here are the steps to calculate the unemployment rate:

  1. Identify the number of unemployed people: In Country X, this is 5 million people.

  2. Identify the total labor force: In Country X, this is the sum of the employed people (60 million) and the unemployed people who are looking for work (5 million), which equals 65 million people.

  3. Divide the number of unemployed people by the total labor force: 5 million divided by 65 million equals approximately 0.0769.

  4. Multiply the result by 100 to get the unemployment rate as a percentage: 0.0769 times 100 equals 7.69%.

So, the unemployment rate in Country X is approximately 7.69%.

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