Question

Suppose that you are provided with the following data for your country for a particular month: 200 million people are working, 20 million are not working but are looking for work, and 40 million are not working and have given up looking for work. The official unemployment rate for that month is:

Answer 1

`Unemployement\,\,rate=23%`

Explanation:

To find the unemployment rate we have the next expression:

`Unemplyment\,\,rate=(Unemployment\,\,people)/(Total\,\, labor\,\, force)\cdot 100`

We have the next data:

200 million employed

20 million unemployed

40 million umemployed are not looking for a job

Then the total labor force will be the employed and the unemployed population then de have 260 million

`Unemployement\,\,rate=(60million)/(260million)\cdot 100`

`Unemployement\,\,rate=(6)/(26)\cdot 100`

`Unemployement\,\,rate=0.23\cdot 100`

`Unemployement\,\,rate=23%`