The Joy of Unemployment Calculation

What is the unemployment rate?

a. 0.8 million

b. 9.5%

c. 1 million

d. 8.4 million

(A) a (B) b (C) c (D) d

Answer:

The correct answer is a. 0.8 million.

To calculate the unemployment rate, we first need to find the number of unemployed individuals. Unemployment refers to individuals who are actively seeking employment but do not have a job. In this scenario, we are given the adult population, the number of employed individuals, and the labor-force participation rate.

First, we calculate the number of people in the labor force by multiplying the adult population (12 million) by the labor-force participation rate (70%). This results in 8.4 million individuals in the labor force.

Next, to find the number of unemployed individuals, we subtract the number of employed individuals (7.6 million) from the total labor force (8.4 million), which gives us 0.8 million unemployed individuals.

Therefore, the unemployment rate is calculated to be 0.8 million, making option a the correct choice.