Suppose that the Bureau of Labor Statistics reported that there were 62 million people over age 25 whose highest level of education was some college or an associate degree. Of these, 45.3 million were employed and 3.6 million were unemployed. What were the labor-force participation rate and the unemployment rate for this group?
A)7.4% and 78.9%
B)78.9% and 7.4%
C)126.8% and 7.4%
D)78.9% and 126.8%

Question

Quizplus · Accepted Answer

The labor-force participation rate is calculated as the sum of employed and unemployed individuals divided by the total population, then multiplied by 100. For this group, it is $\frac{45.3\ million + 3.6\ million}{62\ million} \times 100 = 78.9%$. The unemployment rate is calculated as the number of unemployed individuals divided by the labor force (employed plus unemployed), then multiplied by 100. For this group, it is $\frac{3.6\ million}{45.3\ million + 3.6\ million} \times 100 = 7.4%$.

Suppose That the Bureau of Labor Statistics Reported That There