Question

In 2016 the Bureau of Labor Statistics reported that there were 71.9 million people over age 25 who had at least a bachelor’s degree. Of these 52.1 million were employed and 1.3 million were unemployed. What were the labor-force participation rate and the unemployment rate for this group?

(A) 72.5% and 1.8%
(B) 72.5% and 2.4%
(C) 74.3% and 1.8%
(D) 74.3% and 2.4%

Answer 1

The correct option here is D) 74.3% and 2.4% .

Step-by-step explanation:

Formula for calculating the labor force participation rate is -

Total number of people in labor force / Total number of people above age 25

Here number of people in labor force = employed + unemployed people

= $52.1 million + $1.3 million

= $53.4 million

labor force participation rate = $53.4 million / $71.9 million

= .743 x 100 ( multiplying by 100 to make it in percentage )

= 74.3%

Formula for unemployment rate =

Total number of people unemployed / total number of people in labor force

= $1.3 million / $53.4 million

= .24 x 100 (multiplying by 100 to make it in 100 )

= 2.4%