Question

Suppose that you are given the following information:

a. If the labour force participation rate is 65 per cent, what is the labour force?

b. How many workers are employed?

c. What is the unemployment rate?

Short answer

a. $214.5$million

b. $61.5$million

c.$3.9627\%$

Step-by-step solution

introduction

Given,

Total population = $330$million

Unemployment = $8.5$million

Labour force participation rate =$65\%$

explanation part (a)

We know,

Labour force = Rate of unemployment$\times$Total population

$\Rightarrow 0.65\times 330=214.5$million

part (b)

We know,

Number of employed = total population - Adult, noninstitutionalized, nonmilitary population - unemployed

$\Rightarrow 330-260-8.5=61.5$million

part (c)

We know,

unemployment rate = (number of unemployed$÷$total labour force)$\times 100$

$$\begin{gathered} \Rightarrow \frac{8.5}{214.5}\times 100 \\ =3.9627\% \end{gathered}$$

The unemployment rate is obtained.