Question

Assume the following data for a country:

Category Number of People (in Millions)
Total Population 500
Population Under 16 Years of Age or Institutionalized 120
Not in Labor Force 150
Unemployed 23
Part-Time Workers Looking for Full-Time Jobs 10
A) What is the size of the labor force (in millions)?
B) What is the official unemployment rate (in percentage)?

Answer 1

A) 230 million

B) 10%

Step-by-step explanation:

Given:

Total Population = 500 millions

Population Under 16 Years of Age or Institutionalized = 120 millions

Not in Labor Force = 150 millions

Unemployed = 23 millions

Now,

A) Labor force

= Total population – Population under 16 years of age – Not in labor force

= 500 – 120 – 150

= 230 millions

B) Unemployment rate =
`\frac{\textup{Unemployment}}{\textup{Labor force }}*100\%`

or

Unemployment rate =
`\frac{\textup{23 million}}{\textup{230 million }}*100\%`

or

Unemployment rate = 10%