Question

The labor force (sum of employed and unemployed workers) is fixed at 120 million. Each month, 2% of the workers who are employed at the beginning of the month lose their job, and 10% of the workers who are unemployed at the beginning of the month find a job. Assume that in January the number of workers without a job (unemployed) are 10 million. How many workers will be unemployed in March, that is, two months later

Answer 1

Total number of unemployed (March)= 12,256,000

Step-by-step explanation:

Giving the following information:

Total labor force= 120 million

Unemployed people (January)= 10 million

Each month, 2% of the workers who are employed at the beginning of the month lose their job, and 10% of the workers who are unemployed at the beginning of the month find a job.

First, we will calculate the unemployed and employed people for February:

New Unemployed= 110,000,000*0.02= 2,200,000

New employed= 10,000,000*0.1= 1,000,000

Total number of unemployed= 10,000,000 + 2,200,000 - 1,000,000= 11,200,000

Total number of employed= 110,000,000 + 1,000,000 - 2,200,000= 108,800,000

Now, for March:

New Unemployed= 108,800,000*0.02= 2,176,000

New employed= 11,200,000*0.1= 1,120,000

Total number of unemployed= 11,200,000 + 2,176,000 - 1,120,000= 12,256,000

Total number of employed= 108,800,000 + 1,120,000 - 2,176,000= 107,744,000