Economy
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# Q:During 2010, a country in Europe had a population of 7.5 million people (16 years and older). Out of which 4.5 million peopleare employed, 1.5 million people are unemployed. Calculate approximate unemployment rate.

The time for answering the question is over

So how do economists arrive at the percentages in and out of the labor force and the unemployment rate? We will use the values in Table 1 to illustrate the steps.

To determine the percentage in the labor force:

Step 1. Divide the number of people in the labor force (159.1 million) by the total adult (working-age) population (253.5 million).

Step 2. Multiply by 100 to obtain the percentage.

Percentage in the labor force

=

159.1

253.5

Percentage in the labor force

=

0.628

Percentage in the labor force

=

62.8

percent

To determine the percentage out of the labor force:

Step 1. Divide the number of people out the labor force (94.4 million) by the total adult (working-age) population (253.5 million).

Step 2. Multiply by 100 to obtain the percentage.

Percentage out of the labor force

=

94.4

253.5

Percentage out of the labor force

=

0.372

Percentage out of the labor force

=

37.2

percent

To determine the unemployment rate:

Step 1. Divide the number of unemployed people (7.7 million) by the total labor force (159.2 million).

Step 2. Multiply by 100 to obtain the rate.

Unemployment rate

=

7.7

159.2

Unemployment rate

=

0.0487

Unemployment rate

=

4.8

percent

TRY IT

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