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19 March, 04:21

Suppose the unemployment rate is 6%, the total working-age population is 120 million, and the number of unemployed is 3.5 million. Determine: (a) The participation rate. (b) The size of the labor force. (c) The number of employed workers. (d) The Employment-Population rate.

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  1. 19 March, 05:15
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    (a) The participation rate.

    94%

    (b) The size of the labor force.

    58.33 million

    (c) The number of employed workers.

    54.83 million

    (d) The Employment-Population rate.

    45.70%

    Explanation:

    (a)

    Participation rate = (Number of Employed People / Labor force) x 100

    Participation rate = (54.83 / 58.33) x 100

    Participation rate = 94%

    (b)

    Unemployment rate = (Unemployed People / Labor force) x 100

    6% = 3.5 million / Labor force

    Labor force = 3.5 million / 6%

    Labor force = 58.33 million

    (c)

    Number of Employed People = Labor force - Unemployed people

    Number of Employed People = 58.33 - 3.5 = 54.83 million

    (d)

    The Employment-Population rate = (Number of Employed People / Working age population) x 100 = (54.83 / 120) x 100 = 45.7%
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