Question

refer to the table below. calculate the u - 3 unemployment rate if 10 million employed people lose their jobs and immediately begin looking for new jobs.

part - time employed for economic reasons	full - time employed	unemployed	discouraged	other marginally attached	not in the labor force

Explanation:

Step1: Define U - 3 formula

The U - 3 unemployment rate formula is $U - 3=\frac{\text{Unemployed}}{\text{Labor Force}}\times100\%$. The labor force is the sum of the employed and the unemployed. Initially, the number of unemployed is 12 million. After 10 million employed people lose their jobs and start looking for work, the new number of unemployed is $12 + 10=22$ million.

Step2: Calculate labor - force

The initial labor - force is the sum of full - time employed, part - time employed and unemployed, which is $78+22 + 12=112$ million. After 10 million people lose their jobs, the new labor - force is $78+22-10 + 22=112$ million.

Step3: Calculate U - 3 rate

Using the U - 3 formula, $U - 3=\frac{22}{112}\times100\%\approx19.6\%$.

Answer:

19.6%