Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the unemployment rate?
A) 15.4 percent
B) 11.4 percent
C) 9.0 percent
D) 13.3 percent

Question

Quizplus · Accepted Answer

To calculate the unemployment rate, we use the formula: 
Unemployment Rate = (Number of Unemployed / Labor Force) x 100

Number of Unemployed = Labor Force - Number of people employed
Number of Unemployed = 150 million - 130 million
Number of Unemployed = 20 million

Unemployment Rate = (20 million / 150 million) x 100
Unemployment Rate = 0.1333 x 100
Unemployment Rate = 13.3%

Therefore, the best choice is D, 13.3 percent.

Suppose the Population Is 220 Million People, the Labor Force