Question

Data for an economy shows that the unemployment rate is 6%, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are unemployed this economy?

Answer 1

80 million and 7.2 million is the rate

Step-by-step explanation:

Unemployment rate is 6% of participation rate(i.e those employed)

Participation rate is 60%( employed ) = 60% of 200 million = 120 million

The population is 200 million, and 60% is employed = 120 million.

In conclusion, if 200 million is the population and 120 million are employed

the raw simple calculation is 200-120 = 80 million.

80 million are not employed and in this 80 million, it constitute of 16 years and others. so not all 80 million are engaged or part of employment rate.