Question

The unemployment rate is found by dividing the number of unemployed people by the

A) number of the working-age population, and multiplying by 100.
B) sum of working individuals plus unemployed workers, and multiplying by 100.
C) number in the labor force, and dividing by 100.
D) number of working individuals, and multiplying by 100.

Answer 1

The unemployment rate is found by dividing the number of unemployed people by the sum of working individuals plus unemployed workers, and then multiplying by 100 to get a percentage.

Step-by-step explanation:

The unemployment rate is calculated by taking the number of unemployed people and dividing it by the total labor force, then multiplying the result by 100 to get a percentage. The total labor force includes both employed individuals and those who are unemployed and actively seeking work. So, the correct answer to the student's question is B) sum of working individuals plus unemployed workers, and multiplying by 100.

To exemplify, if there are 7.635 million unemployed people in a labor force of 157 million, the unemployment rate calculation would be as follows:

1. 
   
3. Divide the number of unemployed people (7.635 million) by the total labor force (157 million).
4. 
   
6. Multiply the result by 100 to obtain the unemployment rate.

This results in an unemployment rate calculation that provides a clear indicator of the percentage of the labor force that is currently without employment but actively seeking work.