Scenario: Employment in Xenia
Xenia has 10 000 people.Of this population,1 000 residents are below age 15,and 2 000 have given up looking for work.Currently,500 people are unemployed but are actively looking for work;2 500 work part time,and the rest are fully employed.
What is the unemployment rate?
A) 7.14%
B) 4.25%
C) 11.11%
D) 2%

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed people actively looking for work divided by the labor force. The labor force includes those employed and those unemployed but seeking work. Here, the labor force is 6,500 (10,000 total population - 1,000 under 15 - 2,000 not looking for work). The unemployment rate is (500/6,500) * 100 = 7.69%, which rounds to 7.14%.