1 In a country with 200 million people aged 16 years and old

1. In a country with 200 million people aged 16 years and older, 120 million are in the labor force, and 114 million are employed, what is the participation rate?

2. In a country with 200 million people aged 16 years and older, 120 million in the laborforce, and 114 million employed, what is the unemployment rate?

Solution

Question 1

Working-age population = 200 million

Labor force = 120 million

Calculate the participation rate -

Participation rate = (Labor force/Working-age population) * 100

Participation rate = (120 million/200 million) * 100

Participation rate = 60

The participation rate is 60 percent.

Question 2

Labor force = 120 million

Employed = 114 million

Unemployed = Labor force - Employed = 120 million - 114 million = 6 million

Calculate the unemployment rate -

Unemployment rate = (Unemployed/Labor force) * 100

Unemployment rate = (6 million/120 million) * 100 = 5%

The unemployment rate is 5 percent.