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Suppose a country's labor force is 153.9 million (of whom 139.1 million are employed). What is the country's unemployment rate?

User DT Sawant
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Answer:

Step-by-step explanation:

a) Data and Calculations:

Country's labor force = 153.9 million

Employed labor = 139.1 million

Unemployed labor = 14.8 million (153.9 - 139.1)

Unemployment rate = Unemployed labor/Country's labor force * 100

= 14.8/153.9 * 100

= 9.62%

b) This country's unemployment rate is the percentage of the total labor force that is unemployed but those unemployed people are actively seeking work. This implies that the rate considers only the proportion of the country's labor force that is not currently employed but it could be employed when economic situations change because those involved are willing to work. Therefore, the computation of this rate excludes those who are not actively seeking paid work.

User Workman
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