Suppose that in some state the civilian, non-institutionalized adult population is 4 million, the labor force participation rate is 75%, and 250,000 people are unemployed. What is the unemployment rate (to the nearest tenth, no % sign) ?

8.33%

Explanation:

The computation of the unemployment rate is shown below;

Before computing it, first we have to determine the labor force which is

As we know that

Labor force participation rate = Labor force : Total non-institutionalized adult population

75% = Labor force : 4,000,000

So, the labor force is

= 4,0000,000 * 0.75

= 3,000,000

Now unemployment rate is

= Unemployed people : Labor force

= 250,000 : 3,000,000

= 8.33%