Question

A survey reveals that, on a small island, initially 100 people have jobs, 25 people don't have jobs but are looking for jobs, and 45 people are neither working nor looking for work. Suppose that 15 of the 45 people who weren't looking for work now begin looking for work. There are now 40 people looking for work and 100 people working. The unemployment rate:

Answer 1

The unemployment rate is 40%

Explanation:

The definition of unemployment is: people who is actively searching for work but is unable to find it. In this case, there are 40 people who is actively searching for work. Then, to find the unemployment rate you must divide the total number of people who is searching for work, over the total population. And then multiply this number times 100. The mathematical process is:

40/100= 0.4

0.4*100= 40%

The unemployment rate is 40%