The number of adults not in the labor force of a country equals 6 million,and the number of individuals employed is 5 million.If there are 12 million potential adult workers in the economy,what is the current unemployment rate in this country?

Question

Quizplus · Accepted Answer

The number of unemployed individuals in the economy can be calculated by subtracting the number of employed individuals from the total potential workers: 
Total potential workers = employed + unemployed + not in labor force 
12 million = 5 million + unemployed + 6 million 
Unemployed = 1 million 
The unemployment rate is then calculated by dividing the number of unemployed individuals by the total labor force (i.e. employed + unemployed): 
Unemployment rate = (unemployed / (employed + unemployed)) x 100 
Unemployment rate = (1 million / 6 million) x 100 = 16.67%

The Number of Adults Not in the Labor Force of a Country