A survey reveals that, on a small island, 1,000 people have jobs, 250 people are unemployed and looking for jobs, and 450 people are neither working nor looking for work. The unemployment rate on the island is _____%.

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed people divided by the labor force (employed + unemployed), then multiplied by 100. Here, the labor force is 1,000 (employed) + 250 (unemployed) = 1,250. The unemployment rate is (250 / 1,250) * 100 = 20%.

A Survey Reveals That, on a Small Island, 1,000 People