With 125 million people working, 8 million out of work and looking for work, and 147 million neither working nor looking for work the unemployment rate would be

Question

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The unemployment rate is calculated by dividing the number of unemployed individuals by the labor force (the sum of employed and unemployed individuals). In this case, the labor force is 125 million + 8 million = 133 million. Therefore, the unemployment rate is 8/133, which is approximately 6.0% (option C). Option A is incorrect because it only considers the proportion of unemployed individuals among those who are currently employed. Option B is incorrect because it includes individuals who are not in the labor force in the denominator. Option D is incorrect because it includes individuals who are not in the labor force in both the numerator and denominator.

With 125 Million People Working, 8 Million Out of Work