Question

QUESTION 10

1. The United Kingdoms of Dempsania has the following labor statistics:

   Total Population: 200 million

   Population under 16: 50 million

   Employed workers 100 million

   Economic part time workers: 25 million

   Unemployed workers: 25 million

   Marginally attached workers: 25 million

   What is U-6 unemployment? base Year 2015

Answer 1

Employed workers 100 million

Economic part time workers: 25 million

Unemployed workers: 25 million

Marginally attached workers: 25 million

Calculate the Labor Force -

Labor Force = Employed Workers + Unemployed Workers = 100 million + 25 million = 125 million

Calculate the U-6 unemployment rate -

U-6 = [(unemployed workers + marginally attached workers + economic part time workers)/(labor force + marginally attached workers)] * 100

U-6 = [(25 million + 25 million + 25 million)/(125 million + 25 million)] * 100

U-6 = [75 million/150 million] * 100

U-6 = 50%

The U-6 unemployment rate is 50 percent.