Suppose that the adult population is 210 million, and there are 130 million who are employed and 5 million who are unemployed. Calculate the unemployment rate and the labor force participation rate.

Unemployment rate = 3.7%

Labor force participation rate = 64.3%

Explanation:

The adult population is 210 million

The number of unemployed adults is 130 million

The number of unemployed adults is 5 million

(a) Unemployment rate = Number of unemployed / (Number of unemployed+Number of employed) * 100

= 5 million / (5 million+130 million) * 100

= 5 million/135 million*100

= 0.037*100

= 3.7%

(b) Labor force participation rate = (Number of employed+Number of unemployed) / Adult population

= (5 million + 130 million) / 210 million

= 135 million/210 million

= 0.643*100

= 64.3%