Data for an economy shows that the unemployment rate is 6%, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are unemployed this economy?

Question

Gerald Melendez

Social Studies

26 April, 17:40

Data for an economy shows that the unemployment rate is 6%, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are unemployed this economy?

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Answers (1)

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Julien Shields · Answer 1

80 million and 7.2 million is the rate

Explanation:

Unemployment rate is 6% of participation rate (i. e those employed)

Participation rate is 60% (employed) = 60% of 200 million = 120 million

The population is 200 million, and 60% is employed = 120 million.

In conclusion, if 200 million is the population and 120 million are employed

the raw simple calculation is 200-120 = 80 million.

80 million are not employed and in this 80 million, it constitute of 16 years and others. so not all 80 million are engaged or part of employment rate.