A country has 50 million people in the labour force and 5 million unemployed. What is the unemployment rate?
Answer and explanation
Correct answer: A. 10 %
- Step 1: Rate = unemployed / labour force x 100 = 5 / 50 x 100. Step 2. The rate is 10 %. Answer: 10 %. Why not the others: 5 %: the number of unemployed was given as a rate. 90 %: this is the employment rate. 11.1 %: the unemployed were divided by the employed.
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