A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country's unemployment rate?

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed people divided by the labor force. The labor force includes those who are working and those who are actively looking for work. Here, 5 million are looking for work, and 15 million are working (10 million full-time and 5 million part-time), making the labor force 20 million. The unemployment rate is 5 million (unemployed) divided by 20 million (labor force), which is 25%.

A Country Has 50 Million People, 30 Million of Whom