Question

Suppose the working-age population of a fictional economy falls into the following categories: 30 are retired; 45 are stay-at-home parents; 120 are employed full time; 40 are employed part time; 25 are unemployed but are actively looking for employment; 15 are unemployed and are not actively looking for employment. The official unemployment rate as calculated by the BLS would be

Answer 1

The unemployment rate is 13.51%

Step-by-step explanation:

The computation of the unemployment rate is as follows;

But before that following calculations need to be done

Labor Force is

= 120 + 40 + 25

= 185

And, the unemployed would be 25

Now the unemployment rate is

= unemployed ÷ Labor Force

= 25 ÷ 185

= 13.51%

hence, the unemployment rate is 13.51%