In an economy, out of 221.6 million potential workers, 180.65 million are employed. If the labor force in the economy is 200.5 million, calculate:
a. the number of unemployed workers.
b. the unemployment rate.
c. labor force participation rate
d. number of potential workers who are not a part of the labor force.
a. Labor force = number of employed workers + number of unemployed workers
200.5 million = 180.65 million - number of unemployed workers
Therefore, number of unemployed workers = 200.5 million - 180.65 million = 19.85 million
b. The unemployment rate in an economy = (number of unemployed workers/labor force) × 100.
Hence, unemployment rate = (19.85 million/200.5 million) × 100 = 9.9%.
c. Labor force participation rate = (Labor force/potential workers) × 100% = 90.47%.
d. Number of potential workers not in the labor force = potential workers - labor force = 21.1 million
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