Question

If the number of people classified as unemployed is 20,000 and the number of people classified as employed is 230,000, what is the unemployment rate?

Answer 1

Solution:

Unemployment rate = $\frac{Unemployed\;people}{Labor\;force}\times 100$

Labor force = No. of employed persons + No. of unemployed persons

Unemployed people = 20,000

Employed people = 230,000

Labor force = 20,000 + 230,000 = 250,000

Unemployment rate = $\frac{20,000}{250,000} \times 100 = 8\%$