Question

Suppose that some country had an adult population of about 50 million, a labor force participation rate of 60 percent, and had an unemployment rate of 5 percent. How many people were employed?
a. 47.5 million
b. 30 million
c. 28.5 million
d. 1.5 million

Answer 1

Answer:

(c) 28.5 million

Explanation:

Calculating the labor force in the country:

the labor force is 60% of the total population.

Labor force = 60%× 50, 000 000 = 30 million.

The unemployment rate is calculated as:

n = No. of unemployed people ÷ Labor force

Given the unemployment rate is 0.05, the number of people unemployed is equal to:

0.05 = No. of unemployed people ÷ 30

Therefore, No. of unemployed people =

0.05 × 30 = 1, 500, 000

Thus, the number of employed people is equal to:

Employed people = Labor force - Unemployed people

Employed people = 30,000,000 - 1,500,000 = 2,850,000