Question

The non-institutional civilian population is 200 million, of which 140 million are employed and 10 million are unemployed. Based on the information above, the unemployment rate is:______

Answer 1

6.67%

Step-by-step explanation:

The unemployment rate is computed by dividing the number of unemployed with the total number of people in labor force multiplied with 100. I.e

= ( Unemployed / Total number of people in labor force ) × 100

Given that;

Number of unemployed people = 10 million

Total number of people in labor force = 10million + 40 million = 150million

Therefore,

Unemployment rate = (10/150) × 100

Unemployment rate = 6.67%