Homework Answers
Here, 25% of the labor force remain unemployed for every 20 days in 365 days (a year).
Thus, we can make the following table:
|
Group |
Weights |
No of days employed |
|
Group 1 |
75% or 0.75 |
365 |
|
Group 2 |
25% or 0.25 |
(365 – 20) = 345 |
Employment rate: 0.75 * (365/365) + 0.25 * (345/365) = 0.9863
Hence, Unemployment rate: 1 – (employment rate) = 0.0136
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