In an economy, the working-age population is 100 million.

Of this total,

80 million workers are employed.

3 million workers are unemployed.

14 million workers are not available for work (homemakers, full-time students, etc.).

2 million workers are available for work but are discouraged and thus are not seeking work.

1 million workers are available for work but are not currently seeking work due to transportation or childcare problems.

The unemployment rate in this economy is ___ %

Question

Business

Kaya Horton

1 May, 21:18

In an economy, the working-age population is 100 million.

Of this total,

80 million workers are employed.

3 million workers are unemployed.

14 million workers are not available for work (homemakers, full-time students, etc.).

2 million workers are available for work but are discouraged and thus are not seeking work.

1 million workers are available for work but are not currently seeking work due to transportation or childcare problems.

The unemployment rate in this economy is ___ %

+5

Answers (1)

Know the Answer?

Chapman · Answer 1

3.6%

Explanation:

The formula to compute the unemployment rate is shown below:

Unemployment rate = (Number of Unemployed workers) : (Total labor force) * 100

where,

Number of unemployed workers = 3 million

And, The labor force = 80 million + 3 million = 83 million

Now the unemployment rate is

= (3 million) : (83 million)

= 3.6%