Answer to Question #257268 in Macroeconomics for sabrina courchesne

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