Question

After a financial crisis hits the country of Barbaria, 1 million people become unemployed. If 25 million individuals are lucky enough to keep their jobs, what is the unemployment rate

Answer 1

The correct answer is: 4%.

Step-by-step explanation:

The unemployment rate is the percentage that represents the relationship between a country's labor force with the number of unemployed individuals who could be joining the labor force. In the U.S., the agency in charge of releasing the unemployment rate is the Bureau of Labor Statistics (BLS). The unemployment rate can be calculated as follows:

Unemployment rate = (Unemployed / Labor force) x 100

Thus, in the example:

• Unemployment rate = (1,000,000 / 25,000,000) x 100
• Unemployment rate = 4%