Question

Number of people (millions) 14 123 Category Institutionalized Full-time workers Less than 16 years of age Armed forces (noncivilian) Part-time workers Population Looking for work 1E) 20 27 314 12 The unemployment rate is (calculate to the nearest one-tenth of a percent) 9 See Hint Part 2 (2 points) If 4 million of those who are currently unemployed become discouraged workers, the unemployment rate will The unemployment rate is now decrease calculate to the nearest one-tenth of a percent)

Answer 1

$Unemployment\: rate = \frac{Number\: of\: unemployed}{Labor\: force} * 100$

Labor Force = Employed + Unemployed

Labor Force = 123 (full time workers) + 27 (part-time workers) + 12 (looking for work)

Labor force = 162

$Unemployment\: rate = \frac{12}{162} * 100$

Unemployment rate = 7.4%

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If currently unemployed workers become discouraged workers, the unemployed decreases, so unemployment rate decreases.

Labor Force = Employed +Unemployed

When discouraged workers are deducted from unemployed, unemployed and labor force decreases.

Labor force = 162 - 4 = 158

Unemployed = 12 - 4 = 8

$Unemployment\: rate = \frac{8}{158} * 100$

Unemployment rate = 5.1%