Question

Suppose people in the adult population in a small country are classified based on their age. Labor Force Status less than 55 55 and older Number employed 400,000 100,000 Number unemployed 25,000 7,000 Number in Population 600,000 200,000 In the proper order, which age group has the highest unemployment rate and which has the highest labor force participation rate?

Answer 1

Answer

given,

Labor Force Status             less then 55                   55 and older

Number employed       400,000                           100,000

Number unemployed       25,000                                7,000

Number in Population       600,000                           200,000

labor force under 55 = 400000 + 25000 = 425000

labor force older than 55 = 100,000 + 7000 = 107000

unemployed rate for less than 55

       = $\dfrac{25000}{425000}\times 100$

       = 5.88 %

unemployed rate older  than 55

       = $\dfrac{7000}{107000}\times 100$

       = 6.54 %

highest rate of unemployment is for labor over 55.

participation of rate for less than 55

       = $\dfrac{400000}{600000}\times 100$

       = 66.66 %

participation of rate for over 55

       = $\dfrac{100000}{200000}\times 100$

       = 50 %

highest rate of participation is of labor under 55