Question

How many people are unemployed if the employment ratio is 75%, there are 90 million people employed, and there are 20 million people not in the labor force?

Answer 1

Ans) Employment ratio = (employed ÷ working age population)×100

75 = (90 million ÷ working age population)×100

0.75 = 90 million ÷ working age population

Working age population = 90 million ÷ 0.75 = 120 million

Working age population = labour force + not in labor force

120 million = labour force + 20 million

Labour force = 120 million - 20 million = 100 million

Labour force = employed + unemployed

100 million = 90 million + unemployed

Unemployed = 100 million - 90 million

Unemployed people = 10 million.

Also, unemployment rate = (unemployed ÷ labour force)×100

Unemployment rate = (10 ÷ 100) ×100 = 10%