Question

There are 400 million people currently working in Country A. 40 million people are

out of a job but still looking for one. 40 million people are out of a job and are not
looking for one.
What is the unemployment rate for Country A?

Answer 1

9.09%

Step-by-step explanation:

In order to calcualte the unemployment rate we need to divide the number of individual's currently unemployed (40 million) by the number of total individuals in the labor force which would be the people that are employed and the people that are unemployed but still looking for a job. Therefore, the total labor force would be 440 million (400 million + 40 million). Now we divide and multiply the result by 100 to get the unemployment rate in a percentage.

`(40)/(440)` * 100 = 9.09%