Question

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Italian adult non- institutionalized population was 51.070 million, the labor force was 24.710 million, and the number of people employed was 22.765 million. According to these numbers, the Italian labor-force participation rate and unemployment rate were about:____________

a. 48.4% and 3.8%.
b. 48.4% and 7.9%.
c. 44.6% and 3.8%
d. 44.6% and 7.9%

Answer 1

b. 48.4% and 7.9%

Step-by-step explanation:

Given: Italian adult non- institutionalized population was 51.070 million.

The labor force was 24.710 million.

The number of people employed was 22.765 million.

Now, finding the Italian labor-force participation rate.

Labor-force participation rate=
`(Labor\ force)/(Total\ population)`

⇒ Labor-force participation rate=
`(24.710)/(51.070)* 100`

∴ Labor-force participation rate=
`48.38\% \approx 48.4\%`

Next finding unemployment rate.

Unemployment rate=
`(Total\ population- (Labor\ force+ people\ employed))/(Total\ population)`

⇒ Unemployment rate=
`(51.070- (24.710+22.765))/(51.070)`

⇒ Unemployment rate=
`(51.070- (47.475))/(51.070)`

Opening parenthesis.

⇒ Unemployment rate=
`(3.595)/(51.0170) * 100`

∴ Unemployment rate=
`7.039\%`

Closest option available is
`7.9\%`

Hence, labor force participation rate is 48.4% and unemployment rate is 7.9%