Employment status of the working age population
of Metropolis is approximately:
Table 12.1
-Given the data in Table 12.1, if the workers who are "not employed and not looking for work" were counted as not employed and in the labor force, the unemployment rate of Metropolis would be approximately
A) 4 percent.
B) 7 percent.
C) 9 percent.
D) 10 percent.

Question

Employment status of the working age population
of Metropolis is approximately:
  Table 12.1
-Given the data in Table 12.1, if the workers who are "not employed and not looking for work" were counted as not employed and in the labor force, the unemployment rate of Metropolis would be approximately
A) 4 percent. 
B) 7 percent. 
C) 9 percent. 
D) 10 percent.

Quizplus · Accepted Answer

To calculate the unemployment rate in Metropolis, we need to divide the number of unemployed individuals by the number of individuals in the labor force. The current unemployment rate in Metropolis is (20,000 / 220,000) x 100, which is approximately 9%. However, if we count the workers who are "not employed and not looking for work" as not employed and in the labor force, the number of unemployed individuals would increase to 30,000 (20,000 + 10,000) and the number of individuals in the labor force would increase to 240,000 (220,000 + 20,000). The unemployment rate would then be (30,000 / 240,000) x 100, which is approximately 12.5%. Therefore, the answer is C, 9 percent.

Employment Status of the Working Age Population