In an economy, the working-age population is 100 million. Of this total, 80.0 million workers are employed. 3.0 million workers are unemployed. 14.0 million workers are not available for work (homemakers, full-time students, etc.). 2.0 million workers are available for work but are discouraged and thus are not seeking work. 1.0 million workers are available for work but are not currently seeking work due to transportation or childcare problems.

Question

Charlotte Miles

Business

21 April, 06:39

In an economy, the working-age population is 100 million. Of this total, 80.0 million workers are employed. 3.0 million workers are unemployed. 14.0 million workers are not available for work (homemakers, full-time students, etc.). 2.0 million workers are available for work but are discouraged and thus are not seeking work. 1.0 million workers are available for work but are not currently seeking work due to transportation or childcare problems.

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Answers (1)

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Ruth Cabrera · Answer 1

Unemployment rate = 3.6%

Explanation:

Unemployment is the number of people who are willing to work and are actively seeking work but are unable to find it. The unemployment rate is the unemployed / total number of people in the labor force x 100.

In the above scenario, the unemployed is 3 million people. The others are either already employed, unavailable, unwilling or not seeking work.

The labour force comprises of those who are employed and unemployed, that is 80million + 3million = 83 million.

Hence, unemployment rate = (3/83) x 100 = 3.6%