In an economy, the number of potential workers is 60,000, the size of the labor force is 45,000, and the number of employed workers is 39,000. Calculate the unemployment rate and labor force participation rate in the country
What will be an ideal response?
Unemployment rate in the country = (Labor force - employed workers)/Labor force
= (45,000 - 39,000)/45,000 = 13.33%.
Labor force participation rate in the country = Labor force/potential adult workers
= 45,000/60,000 = 75%.
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