If the unemployment rate is 6 percent and the number of employed is 24 million,then the labour force equals ______ million.
A) 22.6
B) 24.0
C) 25.5
D) The answer cannot be determined with the information given.

Question

Quizplus · Accepted Answer

The formula for calculating the labor force is:
Labor Force = Number of Employed + Number of Unemployed
We are given that the unemployment rate is 6 percent. Therefore, the number of unemployed can be calculated as follows:
Unemployed = (Unemployment Rate/100) x Labor Force
6 percent of Labor Force = (6/100) x Labor Force = 0.06 x Labor Force

We are also given that the number of employed is 24 million.

So, Labor Force = Number of Employed + Number of Unemployed
Labor Force = 24 million + 0.06 x Labor Force

Solving for Labor Force:

0.94 x Labor Force = 24 million

Labor Force = 24 million / 0.94

Labor Force = 25.53 million (rounded to one decimal place)

Therefore, the labor force equals 25.5 million (option C).

If the Unemployment Rate Is 6 Percent and the Number