Question

the following information is for the fictitious nation alpha: working - age population = 1 million labor force = 600,000 number employed = 570,000 instructions: enter your answers as percent values. a. the unemployment rate for alpha is %. b. the labor force participation rate for alpha is %.

Explanation:

Step1: Calculate unemployed number

The number of unemployed is the labor - force minus the number of employed. So, Unemployed = Labor force - Employed. Given Labor force = 600000 and Employed = 570000, then Unemployed = 600000 - 570000 = 30000.

Step2: Calculate unemployment rate

The unemployment rate formula is $\text{Unemployment rate}=\frac{\text{Unemployed}}{\text{Labor force}}\times100\%$. Substitute Unemployed = 30000 and Labor force = 600000 into the formula: $\frac{30000}{600000}\times100\% = 5\%$.

Step3: Calculate labor - force participation rate

The labor - force participation rate formula is $\text{Labor - force participation rate}=\frac{\text{Labor force}}{\text{Working - age population}}\times100\%$. Given Labor force = 600000 and Working - age population = 1000000, then $\frac{600000}{1000000}\times100\%=60\%$.

Answer:

a. 5
b. 60