Assume the following data for a country:Category Number of People, MillionsTotal population 500Population under 16 years of age or institutionalized 120Not in the labor force 150Unemployed 23Part-time workers looking for full-time jobs 10Instructions: Enter your answers as a whole number.What is the size of the labor force? millionWhat is the official unemployment rate? percent
Question
Assume the following data for a country:Category Number of People, MillionsTotal population 500Population under 16 years of age or institutionalized 120Not in the labor force 150Unemployed 23Part-time workers looking for full-time jobs 10Instructions: Enter your answers as a whole number.What is the size of the labor force? millionWhat is the official unemployment rate? percent
Solution
To calculate the size of the labor force, you subtract the population under 16 years of age or institutionalized and those not in the labor force from the total population.
So, the labor force is calculated as follows:
500 (total population) - 120 (population under 16 years of age or institutionalized) - 150 (not in the labor force) = 230 million
The official unemployment rate is calculated by dividing the number of unemployed by the total labor force and then multiplying by 100 to get a percentage.
So, the unemployment rate is calculated as follows:
(23 (unemployed) / 230 (labor force)) * 100 = 10 percent
So, the size of the labor force is 230 million and the official unemployment rate is 10 percent.
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