Question

In an​ economy, the​ working-age population is

400

million. Of this​ total,

300

million workers are employed.

16

million workers are unemployed.

64

million workers are not available for work​ (homemakers, full-time​ students, etc.).

12

million workers are available for work but are discouraged and thus are not seeking work.

8

million workers are available for work but are not currently seeking work due to transportation or childcare problems.

The unemployment rate in this economy is

Answer 1

labour force is defined as the proportion of population who is willing and able to work.

Employed persons are proportion of labour force who is employed in economic activity.

unemployment rate is defined as the proportion of labour force force who is unemployed.

Data given:

• working age population = 400 million
• Employed population = 300 million
• Unemployed population = 16 million
• Population not available for work = 64 million
• Population available for work but not seeking job = 13 million
• Population available for work but not doing because Transportation & childcare etc = 8 million

Calculation:

• Number of Labour force (willing and able to work) = employed population + unemployed population
  • = 300 + 16
  • = 316
• Number of unemployed labour force = 16
• Unemployment rate = Unemployed Labor force ÷ total labour force × 100 %
  • = 16 ÷ 316 × 100 %
  • 5.06 %