Question

the following information is for the fictitious nation alpha: working - age population = 1.6 million labor force = 992,000 number employed = 922,560 instructions: enter your responses as percent values. a. the unemployment rate for alpha is %. b. the labor force participation rate for alpha is %.

Explanation:

Step1: Calculate the number of unemployed

The number of unemployed is the labor - force minus the number of employed. Unemployed = Labor force - Employed.
Unemployed = 992000 - 922560 = 69440

Step2: Calculate the unemployment rate

The unemployment rate formula is $\text{Unemployment Rate}=\frac{\text{Unemployed}}{\text{Labor force}}\times100\%$.
$\text{Unemployment Rate}=\frac{69440}{992000}\times 100\% = 7\%$

Step3: Calculate the labor - force participation rate

The labor - force participation rate formula is $\text{Labor - force Participation Rate}=\frac{\text{Labor force}}{\text{Working - age population}}\times100\%$.
Working - age population = 1.6 million = 1600000
$\text{Labor - force Participation Rate}=\frac{992000}{1600000}\times100\%=62\%$

Answer:

a. 7%
b. 62%