Scenario: 100 people live in Country X, and 60 of these people are working full time. Tara and Jen have been able to find only part-time jobs. John, Peter, and Luna just had to close their coffee shop; and John and Peter are looking for a new business venture. Luna has inherited a large sum of money and feels that she does need to work anymore. Her sister Sara feels the same way. Four people in Country X are living in care facilities. Ten people are full-time students, and two of them currently are hoping to find a job. All other people are retirees or under the age of 16.
-Refer to the scenario above.How would the unemployment rate change if two more students decide to look for work?

Question

Quizplus · Accepted Answer

Currently, the number of people in the labor force is 60 (full-time workers) + 2 (students hoping to find a job) + 2 (Tara and Jen) + 2 (John and Peter) = 66. The total population is 100, so the unemployment rate is (100-66)/100 = 34%. If two more students decide to look for work, the labor force will increase to 70, and if they are unable to find jobs, the number of unemployed people will increase to 38. Therefore, the new unemployment rate will be (100-70)/100 = 30%, an increase of about 3%.

Scenario: 100 People Live in Country X, and 60 of These