Question

If the population of a country is 1,000,000 people, its labor force consists of 600,000, and 60,000 people are unemployed, the unemployment rate is:

Answer 1

Unemployment rate= 10%

Step-by-step explanation:

Giving the following information:

Population= 1,000,000 people

Labor force= 600,000

Unemployed= 60,000 people

To calculate the unemployment rate, we need to use the labor force, not the total population. It only considers people working and actively looking for a job.

Unemployment rate= unemployed population / labor force

Unemployment rate= 60,000 / 600,000

Unemployment rate= 0.1= 10%