Please provide a guided answer or a brief explanation your h

Please provide a guided answer or a brief explanation, your help is very appreciated.

Total population of country X is 100 million, including: 24 million children under working age and disabled people, 30 million people have become discouraged after looking for work without success, and 4.6 million are unemployed. Calculate: a) total labour force; b) unemployment level

Solution

A) The labor force includes all employed and unemployed people in the economy. So, Labor Force = Employed + Unemployed.

Unemployed population includes people who are not employed and who are actively looking for jobs. People who have not attained the legal age of work are not part of the labor force. Also, labor force does not include disabled and institutionalized people (people lodged in a mental hospital or in prison, etc.). Discouraged workers are also not part of the labor force.

Here, the employed population = Total Population - (Under working age and disabled people + discouraged workers + unemployed) = 100 million - (24  million + 30  million + 4.6  million) = 100 million - 58.6 million = 41.4  million.

Unemployed = 4.6 million.

Labor force = employed + unemployed = 41.4 million + 4.6 million = 46 million.

B) Unemployment rate = (Unemployed / Labor Force) * 100 = 4.6 million / 46 million * 100 = 1/10 * 100 = 10%