Question

In​ March, 2006 the labor department of the country of Jobland determined that the size of the labor force was

102

million out of which

92

million were employed. In May​ 2006, the labor department determined that

1.5

million people became​ "discouraged workers" in April.

Assuming that no new jobs were created between March and​ April, calculate the unemployment rate for March and April.

Jobland unemployment rate in March​ =

nothing

percent.

​(Enter

your response rounded to one decimal​ place.)

Answer 1

Given:

Labor force = 102 million (March 2006)

Number of employed = 92 million

Discouraged workers = 1.5 million

Calculation:

Discouraged workers are not included in the labor force.

New labor force​ = Labor force – Discouraged workers

New labor force = 102 – 1.5 = 100.5 million

New labor force = 100.5 million (April 2006)

​Labor force​ = Number of unemployed + Number of employed

Number of unemployed​ = Labor force - Number of employed

March 2006

Number of unemployed​ = 102 – 92

Number of unemployed​ = 10

April 2006

Number of unemployed​ = 100.5 – 92

Number of unemployed​ = 8.5

Unemployment rate calculation:

Unemployment rate in march 2006 = 9.8%

Unemployment rate in april 2006 = 8.5%