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In an economy with a population of 100 million persons, 50 million holds civilian jobs and 20 million are not working but are looking for a job. The unemployment rate is

Question

In an economy with a population of 100 million persons, 50 million holds civilian jobs and 20 million are not working but are looking for a job. The unemployment rate is

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Solution

To calculate the unemployment rate, we need to determine the number of unemployed individuals and the labor force.

The number of unemployed individuals is given as 20 million, as these are the people who are not working but actively seeking employment.

The labor force is the sum of the employed and unemployed individuals. In this case, the labor force is 50 million (employed) + 20 million (unemployed) = 70 million.

To calculate the unemployment rate, we divide the number of unemployed individuals by the labor force and multiply by 100.

Unemployment rate = (20 million / 70 million) * 100 = 28.57%

Therefore, the unemployment rate in this economy is approximately 28.57%.

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