Assume that, in the population, 95 million people worked for pay last week, 5 million people did not work for pay but had been seeking a job, 5 million people did not work for pay and had not been seeking a job for the past several months, and 45 million were under age 16. The unemployment rate, given these numbers, is:a. 10% b. 11% c. 16.67% d. 21%

Question

Ann Boyd

Business

26 December, 18:19

Assume that, in the population, 95 million people worked for pay last week, 5 million people did not work for pay but had been seeking a job, 5 million people did not work for pay and had not been seeking a job for the past several months, and 45 million were under age 16. The unemployment rate, given these numbers, is:a. 10% b. 11% c. 16.67% d. 21%

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Essence Valenzuela · Answer 1

5%

Explanation:

Firstly, the size of the labor force is 95 + 5 = 100 million people. (NOTE - People that are younger than 16 or not actively looking for a job do not count as labor force).

The people who count as unemployed are the noted 5 million.

The unemployment rate is calculated:

unemployment rate = unemployed / civilian labor force

which is in the example - > 5/100 = 0.05 - > 5%