Table 6.1
Employment status of the working age
population of Metropolis is approximately:

-Suppose that 50 percent of the part-time workers of Metropolis are looking for full-time jobs. Given the data in Table 6.1, if these workers were counted as not employed and looking for work, the unemployment rate of Metropolis would be approximately
A) 6 percent.
B) 13 percent.
C) 16 percent.
D) 21 percent.

Question

Table 6.1
Employment status of the working age
population of Metropolis is approximately:
 
-Suppose that 50 percent of the part-time workers of Metropolis are looking for full-time jobs. Given the data in Table 6.1, if these workers were counted as not employed and looking for work, the unemployment rate of Metropolis would be approximately
A) 6 percent. 
B) 13 percent. 
C) 16 percent. 
D) 21 percent.

Quizplus · Accepted Answer

To calculate the unemployment rate, we need to divide the number of unemployed individuals by the labor force, which is the sum of employed and unemployed individuals.

If we count the part-time workers who are looking for full-time jobs as unemployed and looking for work, then the number of unemployed individuals would be:

Unemployed = 11,000 + 4,000 + 2,000 = 17,000

The labor force would be:

Labor force = 70,000 + 11,000 + 4,000 + 2,000 = 87,000

Therefore, the unemployment rate would be:

Unemployment rate = Unemployed / Labor force x 100%
Unemployment rate = 17,000 / 87,000 x 100%
Unemployment rate = 19.5%

The closest option is B) 13%, so it is the best choice.

Table 6.1 Employment Status of the Working Age