Assume the following for the town of Boone: it has a total population of 60,000 people, of which 4,000 are under 16 years of age or are institutionalized; 4,000 are full-time students who are not employed and are not seeking work; and 50,000 are employed. The rest of the people are out of work but have been actively seeking work within the past four weeks.What is Boone's unemployment rate?

Answer: Boone's unemployment rate is 3.85%.

We need to calculate the number of people who are unemployed in Boone.

Number of unemployed people =   Total population\\                                                        - People under 16 or institutionalized\\                                                        -  Full time students\\                                                         -  Employed people

Number of unemployed people = 60,000 - 4000 - 4000 - 50000

Number of unemployed people = 2,000

Next we calculate the civilian labor force.

Civilian Labor Force = Number of employed people + Number of unemployed people

Civilian Labor Force = 50000 + 2000 = 52000

Finally, we calculate the unemployment rate as follows:

Unemployment rate = \frac{No. of unemployed people}{Civilian labor force}

Unemployment rate = \frac{2000}{52000} = 0.038461538

Unemployment Rate = 3.85%

Rate answer
Wrong answer?

If your question is not fully disclosed, then try using the search on the site and find other answers on the subject Business.

Find another answers

Load image