Question

An economy has 30 people who are unemployed, 50 people who are

employed, and 10 people who are not in the labor force. All of them are 16+ years old.
Calculate the labor force participation rate and unemployment rate of this economy.

Answer 1

The labor force participation rate is calculated by dividing the number of people in the labor force by the total adult population and multiplying by 100. In this case, the labor force participation rate is 80%.

Step-by-step explanation:

The labor force participation rate is the percentage of adults in an economy who are either employed or who are unemployed and looking for a job. To calculate the labor force participation rate, you need to divide the number of people in the labor force (employed + unemployed) by the total adult population and multiply by 100. In this case, the labor force participation rate is calculated as follows:

Labor force participation rate = (number employed + number unemployed) / (adult population) * 100

Using the given information:

• Number employed = 50
• Number unemployed = 30
• Number not in labor force = 10
• Total adult population = number employed + number unemployed + number not in labor force = 50 + 30 + 10 = 90

Labor force participation rate = (50 + 30) / 90 * 100 = 80%