Suppose the current unemployment rate is 5%, the labor force is 400 million people, the labor force participation rate is 80% and the working-age population is 500 million people. How many million people are unemployed?

Question

Mohammad Porter

Business

7 July, 08:12

Suppose the current unemployment rate is 5%, the labor force is 400 million people, the labor force participation rate is 80% and the working-age population is 500 million people. How many million people are unemployed?

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Answers (1)

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Alice Lyons · Answer 1

20,000,000 = unemployed people

Explanation:

Giving the following information:

Suppose the current unemployment rate is 5%, the labor force is 400 million people, the labor force participation rate is 80% and the working-age population is 500 million people.

The unemployment rate is the number of people of working age, disposed to work and looking for a job.

Labor force rate = unemployed people / labor force

0.05 = unemployed people / 400,000,000

400,000,000*0.05 = unemployed people

20,000,000 = unemployed people