The next question(s) refer to the following data:
Suppose a country using the Australian system of unemployment statistics has 300 million people, of whom 200 million are working age. Of these 200 million, 80 million have jobs. Of the remainder: 40 million are actively searching for jobs; 40 million would like jobs but are not searching; and 40 million do not want jobs at all.
-Refer to the information above. The official unemployment rate is:
A) 0.43.
B) 0.13.
C) 0.33.
D) 0.53.
E) 0.23.

Question

Quizplus · Accepted Answer

In the Australian system of unemployment statistics, the official unemployment rate is calculated as the number of actively searching individuals divided by the total number of individuals in the labor force, which consists of those who are employed or actively seeking employment. In this case, the labor force is 80 million people (those who have jobs), plus 40 million people who are actively searching for jobs, for a total labor force of 120 million people. Therefore, the unemployment rate is (40 million / 120 million) = 0.33, or 33%.

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