If 5 million workers are unemployed and 45 million workers are employed, then the unemployment rate is
A) 5%.
B) 10%.
C) 11.1%.
D) 40%.

Question

Quizplus · Accepted Answer

The unemployment rate is equal to the number of unemployed workers divided by the total labor force (which consists of both employed and unemployed workers), multiplied by 100% to express it as a percentage:

Unemployment rate = (number of unemployed workers / total labor force) x 100%

Total labor force = number of employed workers + number of unemployed workers
Total labor force = 45 million + 5 million
Total labor force = 50 million

Using this information:

Unemployment rate = (5 million / 50 million) x 100%
Unemployment rate = 10%

Therefore, the unemployment rate is 10%, which corresponds to choice B.

If 5 Million Workers Are Unemployed and 45 Million Workers