Question

Imagine you are an economist in the country of Utopia. If the number of people

in the adult, civilian, non-institutionalized people is 80, the number of employed
people is 55, and the number of unemployed people is 5, then the
unemployment rate for Utopia is *
Unemployment Rate Formula
U=
Unemployed People
Labor Force
x 100
6.3%
6.9%
7.5%
o
8.3%

Answer 1

8.3%

Step-by-step explanation:

The rate of unemployment is calculated by dividing the number of unemployed people by the total labor force multiplied by 100.

i.e., unemployment rate = unemployed/ labor force x 100.

the labor force = employed people + unemployed people

For Utopia, labor force is 55 + 5 = 60

Unemployment rate

= 5/60 x 100

=0.0833 x 100

=8.3%