Question

How did you come up with the number of unemployed ?

Given the following information for the United States:

Employment                                        155,000, 925

Unemployment                                    -

Unemployment Rate                            3.9%

Labor Force                                         -

Labor Force Participation Rate            61%

Employment – Population Ratio          -          

Answer 1

Unemployment rate = (number of unemployed / Labor Force)

Employment rate = (number of employed / Labor Force)

=> Employment rate = (Labor force - number of unemployed) / Labor Force) = 1 - unemployment rate

=> Employment rate = 1 - 0.039 = 0.961 = 96.1%

Given: Employment = 155,000, 925

=> 0.961 = 155,000, 925/labor Force

=> labor Force = 155,000, 925/0.961 = 161291285

Hence, Unemployment rate = (number of unemployed / Labor Force)

=> 0.039 =  (number of unemployed / 161291285)

=> number of unemployed = 0.039*161291285 = 6290360

Hence number of unemployed = 6290360