Question

According to the U.S. Department of Labor, the unemployment rate in January of 2012 in the United States was 8.3\%. According to the same department, the unemployment rate in January of 2016 was \(4.9 \%\). According to the U.S. Department of Labor, how did the unemployment rate change from January 2012 to January 2016 ? A) It decreased by \(79 \%\). B) It decreased by \(41 \%\). C) It decreased by \(34 \%\). D) It increased by \(41 \%\).

Short answer

B) It decreased by \(41 \% \).

Step-by-step solution

Identifying the initial and final unemployment rates

First, let's identify the initial (January 2012) and the final (January 2016) unemployment rates. The initial unemployment rate is \(8.3 \%\) and the final unemployment rate is \(4.9 \% \).

Find the change in unemployment rates

To find the change in unemployment rates, we subtract the final unemployment rate from the initial unemployment rate: Change in unemployment rate = Initial unemployment rate - Final unemployment rate = \(8.3 \% - 4.9 \% = 3.4 \% \).

Calculate the percentage change

To calculate the percentage change, we divide the change in unemployment rate by the initial unemployment rate, and then multiply by 100: Percentage change = \(\frac{Change \, in \, unemployment \, rate}{Initial \, unemployment \, rate} \times 100\) = \(\frac{3.4 \%}{8.3 \%} \times 100 \approx 40.96 \% \) The percentage change is approximately \(41 \% \). The unemployment rate decreased, so the correct option is: B) It decreased by \(41 \% \).