Question

Use the information in the following table to solve for the unemployment rate.

Population 16 and older	1,000,000
Participation rate	80%
Employed workers	720,000

Please enter your answers as numerical responses and do not write out your answers with words. (ie. 40,000 not "Forty Thousand" or 8% not "Eight percent").

How many workers are in the "Labor Force?"  

How many workers are "Unemployed?"  

What is the "Unemployment Rate?"  

Answer 1

Labor force = Population × Participation rate

                   = 1,000,000 × 80%

                   = 800,000 (Answer)

Unemployed = Labor force – Employed

                     = 800,000 – 720,000

                     = 80,000 (Answer)

Unemployment rate = (Unemployed / L. force) × 100

                                    = (80,000 / 800,000) × 100

                                    = 10% (Answer)