Population and labor force Year Year S Population Labor forc

Population and labor force: Year Year S Population Labor force employed 230 million 110 mallion 200 million 85 million 40 milion8 milbon What is the number of unemployed in year 1?

Solution

Year 1

Population = 200 million

Labour Force = 85 million

Employed = 40 million

What is the unemployment rate in year 1?

Labour Force = Employed + Unemployed

85 million = 40 million + Unemployed

Number of Unemployed = 45 million

Unemployment Rate = Number of unemployed ÷Labour Force*100

= 45 million ÷ 85 million *100 = 52.9 or 53%