In a small town of 100 people, there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs, but wanted jobs. All but one of these had actively looked for a job in the previous four weeks. What is the unemployment rate in this town?
A) 10.0%
B) 11.0%
C) 12.5 %
D) 14.3%

Question

Quizplus · Accepted Answer

The labor force includes those employed and those unemployed but actively seeking work. Here, the labor force is 60 (full-time jobs) + 3 (part-time jobs) + 1 (actively seeking work) = 64. The unemployment rate is the number of unemployed (1) divided by the labor force (64), which is approximately 1.56%, but since the question asks for the unemployment rate among those who want jobs, we consider the 4 who want jobs, making it 3/24 = 12.5%.

In a Small Town of 100 People, There Are 10