Question

if there are 120,000 people in the labor force for a particular town, and the number of people who are unemployed there is 12,000, what is the unemployment rate?

a. 20%

b. 11%

c. 10%

d. 16%

Explanation:

Step1: Recall unemployment - rate formula

The formula for the unemployment rate is $\text{Unemployment Rate}=\frac{\text{Number of Unemployed}}{\text{Labor - Force}}\times100\%$.

Step2: Substitute given values

We are given that the number of unemployed is $12000$ and the labor - force is $120000$. Substitute these values into the formula: $\frac{12000}{120000}\times100\%$.

Step3: Simplify the fraction

$\frac{12000}{120000}=\frac{1}{10}$, and $\frac{1}{10}\times100\% = 10\%$.

Answer:

C. 10%