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