Q:During 2010, a country in Europe had a population of 7.5 million people (16 years and older). Out of which 4.5 million people
are employed, 1.5 million people are unemployed. Calculate approximate unemployment rate.
Answers
Answer:
So how do economists arrive at the percentages in and out of the labor force and the unemployment rate? We will use the values in Table 1 to illustrate the steps.
To determine the percentage in the labor force:
Step 1. Divide the number of people in the labor force (159.1 million) by the total adult (working-age) population (253.5 million).
Step 2. Multiply by 100 to obtain the percentage.
Percentage in the labor force
=
159.1
253.5
Percentage in the labor force
=
0.628
Percentage in the labor force
=
62.8
percent
To determine the percentage out of the labor force:
Step 1. Divide the number of people out the labor force (94.4 million) by the total adult (working-age) population (253.5 million).
Step 2. Multiply by 100 to obtain the percentage.
Percentage out of the labor force
=
94.4
253.5
Percentage out of the labor force
=
0.372
Percentage out of the labor force
=
37.2
percent
To determine the unemployment rate:
Step 1. Divide the number of unemployed people (7.7 million) by the total labor force (159.2 million).
Step 2. Multiply by 100 to obtain the rate.
Unemployment rate
=
7.7
159.2
Unemployment rate
=
0.0487
Unemployment rate
=
4.8
percent
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