If the working-age population is 100 million, the labor force is 85 million, and the number employed is 74.8 million, what is the unemployment rate?

Question

Quizplus · Accepted Answer

The formula for calculating the unemployment rate is:

Unemployment rate = (Number of unemployed workers / Labor force) x 100

To calculate the number of unemployed workers, we subtract the number of employed workers from the labor force:

Number of unemployed workers = Labor force - Number employed
Number of unemployed workers = 85 million - 74.8 million
Number of unemployed workers = 10.2 million

Now we can plug in the numbers to the formula for the unemployment rate:

Unemployment rate = (10.2 million / 85 million) x 100
Unemployment rate = 0.12 x 100
Unemployment rate = 12 percent

Therefore, the correct answer is C, 12 percent.

If the Working-Age Population Is 100 Million, the Labor Force