A country has 25 million people in the labour force and 3 million unemployed. What is the unemployment rate?
Answer and explanation
Correct answer: A. 12 %
- Step 1: Rate = unemployed / labour force x 100 = 3 / 25 x 100. Step 2. The rate is 12 %. Answer: 12 %. Why not the others: 3 %: the number of unemployed was given as a rate. 88 %: this is the employment rate. 13.6 %: the unemployed were divided by the employed.
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