Question

Part 1   (1 point)

Use the table below to answer the question.

Category	Number of people (millions)
Institutionalized	14
Full-time workers	123
Less than 16 years of age	40
Armed forces (noncivilian)	20
Part-time workers	27
Population	314
Looking for work	14

The unemployment rate is (give your answer to two decimals):

_________

Part 2   (2 points)

If 4 million of those who are currently unemployed become discouraged workers, the unemployment rate will

___________. (stay the same, increase, or decrease)

The unemployment rate is now ____________ (give your answer to two decimals).

Answer 1

a) unemployment rate = no. Of unemployed worker / labour force × 100

Labour force = 14+ 123+ 20+ 27+14 = 198 million

no. of unemployed = 14+27+14= 55 million

Unemployment rate = 55/198×100 = 27.7

Part 2.

a) the unemployment rate will decrease

Because discourage workers are not counted as unemployed. So when 4 million people become discouraged worker then 4 million unemployed reduce, due to which unemployment rate decrease.

b) new no. of unemployed = 55 - 4 = 51 million

So unemployment rate = 51/198×100 = 25.7