Question

The Bureau of Labor Statistics reported in 2005 that there were 28.19 million people over age 25 who had no high school degree or its equivalent, 11.73 million of whom were employed and 1.04 million of whom were unemployed. What were the labor-force participation rate and the unemployment rate for this group?
A) 45.3% and 3.7%B) 45.3% and 8.1%C) 41.6% and 3.7%D) 41.6% and 8.1%

Answer 1

Answer: Option (B) is correct.

Explanation:

Given that,

Total population of group = 28.19 million

Employed = 11.73 million

Unemployed = 1.04 million

Total labor force = Employed + Unemployed

                            = 11.73 million + 1.04 million

                            = 12.77 million

Labor-force participation rate = $\frac{Total\ Labor\ Force}{Total\ Population} \times 100$

                                                  = $\frac{12.77}{28.19} \times 100$

                                                  = 45.29%

                                                   = 45.3%

Unemployment rate = $\frac{Unemployed}{Total\ Labor\ Force} \times 100$

                                  =  $\frac{1.04}{12.77} \times 100$

                                  = 8.14%