1 Consider an economy with 320000 residents Of the 320000 pe

1. Consider an economy with 320,000 residents. Of the 320,000 people there are:

20,000 people under 16

180,000 employed people

20,000 unemployed people

Calculate the Unemployment Rate.

Calculate the Labor Force Participation Rate.

Solution

Total employed 180000 Total Unemployed 20000 Total Labour force 200000 Total Population 320000 Rate if Unemployment: Total Unemplyed/ Total Labour force *100 20000/200000*100 = 10% Rate of Particiption: Total Labour force/ Total Population 200000/320000 *100 =62.50%