Answer to Question #97603 in Macroeconomics for JESICCA

Question

In a country with a population of 50 million people, there are 20 million children under the age of 15 years, 16 million employed, 9 million pensioners, 4 million unemployed and 1 million peip who are physically unable to work. Calculate the unemployment rate

Answer 1

Unemployment rate= Number of unemployed persons / labor force

Labor force = the employed + unemployed

(4,000,000/20,000,000) * 100%

Children under the age of 16 years,the physically unable to work, and the retired aren't considered as unemployed individuals.

Answer = 20% unemployment rate.