An economy has a population of 226,500, of whom 12,500 are unemployed and actively seeking work, and 35,000 have given up looking for a job. Also, 28,000 people work part-time, and 151,000 people work full-time. This economy's unemployment rate is _____.

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed people actively seeking work divided by the labor force (employed + unemployed actively seeking work). The labor force is 12,500 (unemployed) + 28,000 (part-time) + 151,000 (full-time) = 191,500. The unemployment rate is (12,500 / 191,500) * 100 = 6.52%, which rounds to 7.0%.

An Economy Has a Population of 226,500, of Whom 12,500