question archive An economy has the following labor market statistics
An economy has the following labor market statistics
Subject:EconomicsPrice:2.88 Bought3
An economy has the following labor market statistics.
Total population of working age = 20 million
People working full-time = 8 million
People working part-time = 2 million (1 million of whom would like full-time work)
Number of people unemployed = 1 million
Calculate the size of the labor force and the unemployment rate.
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The labor force is defined as those over the age of 16 who are actively working or looking for work. In this example, the labor force would be 11 million total - 10 million workers and 1 million unemployed.
That means the unemployment rate would be 1/11, or 9.1% (rounded).
