Assume the following data for a country Number of People Mil

Assume the following data for a country: Number of People (Millions) 500 Category Total population Population under 16 years of age or institutionalized120 Not in labor force Unemployed Part-time workers looking for full-time jobs 150 23 10 What is the size of the labor force? million What is the official unemployment rate?

Solution

Total labor force size= total population - population under 16 years of age - not in labor force

= 500-120-150= 230 millions

Part time workers are considered employed so they are not added in unemployed

Unemployment rate = unemployed / labour size

= 23/230= 0.1

= 10%