Question

The number of people employed in a city are 128,000. The adult population is 201,000, and the labor force participation rate is 67%. Based on the figures, calculate the following. Show your work.

a. the unemployment rate

b. the number of people in the labor force

c. the number of adults not in the labor force

d. how the economy is doing

Answer 1

The total labor force in the economy will be 67% of the total population or we can say, 134,670 people.

Unemployment rate = Number of Unemployed person/labor force.

Unemployed people = 134,670 - 128,000

= 6670.

Unemployment rate = (6670 / 134670) x 100.

= 4.95%.

b) The number of people in the workforce = 134670.

c) The number of people not in the labor force = 66330.

d) The economy is doing fine because the unemployment rate is close to the natural unemployment rate.