Exhibit 12-3 Unemployment categories $$\begin{array} { | l | c | }
\hline \text { Category } & \text { Workers } \
\hline \text { Frictional unemployment } & 250 \
\text { Structural unemployment } & 350 \
\text { Cyclical unemployment } & 600 \
\text { Discouraged workers } & 400 \
\text { Underemployment } & 450 \
\hline
\end{array}$$ According to data in Exhibit 12-3 and assuming the total number of people working is 8,400, the unemployment rate is

Question

Exhibit 12-3 Unemployment categories $$\begin{array} { | l | c | } 
\hline \text { Category } & \text { Workers } \
\hline \text { Frictional unemployment } & 250 \
\text { Structural unemployment } & 350 \
\text { Cyclical unemployment } & 600 \
\text { Discouraged workers } & 400 \
\text { Underemployment } & 450 \
\hline
\end{array}$$ According to data in Exhibit 12-3 and assuming the total number of people working  is 8,400, the unemployment rate is

Quizplus · Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed individuals by the labor force and then multiplying by 100 to get a percentage. In this case, the unemployed individuals include those in frictional, structural, and cyclical unemployment categories, totaling 250 + 350 + 600 = 1200. The labor force includes the total number of people working (8,400) plus the unemployed (1,200), totaling 9,600. Therefore, the unemployment rate is (1,200 / 9,600) * 100 = 12.5%.

Exhibit 12-3 Unemployment Categories According to Data in Exhibit 12-3 and Assuming the Total