The Bureau of Labor Statistics reported in 2005 that there were 28.19 million people over age 25 who had no high school degree or its equivalent, 11.73 million of whom were employed and 1.04 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?
A) 45.3% and 3.7%
B) 45.3% and 8.1%
C) 41.6% and 3.7%
D) 41.6% and 8.1%

Question

Quizplus · Accepted Answer

The labor-force participation rate can be calculated by dividing the number of employed and unemployed people (labor force) by the total number of people in the age group with no high school degree.

Labor-force participation rate = (employed + unemployed) / total

Labor-force participation rate = (11.73 million + 1.04 million) / 28.19 million

Labor-force participation rate = 0.45 or 45%

To calculate the unemployment rate, we need to divide the number of unemployed by the labor force.

Unemployment rate = unemployed / (employed + unemployed)

Unemployment rate = 1.04 million / (11.73 million + 1.04 million)

Unemployment rate = 0.081 or 8.1%

Therefore, the labor-force participation rate and the unemployment rate for this group are 41.6% and 8.1%, respectively. The correct answer is D.

The Bureau of Labor Statistics Reported in 2005 That There