Question

In Littleville, which has 1,000 residents, 400 people do not currently work. Of these 400 persons, 240 are under age 16, 10 are institutionalized, 25 have become discouraged and quit seeking work, and 75 others are either full-time students or homemakers. Of the 600 people who do work, 150 work part-time but wish to work full-time. What is the official unemployment rate in Littleville?

Answer 1

Answer:

7.69%

Explanation:

The official unemployment rate includes people who do not have a job but are able to take a job and are currently seeking one.

People with part time jobs are considered employed.

Littleville has 1,000 residents, 600 are employed = 400 do not work but how many are considered unemployed:

400 - 240 (under age 16) - 10 (institutionalized) - 100 (are not looking for work, including students and homemakers) = 50 unemployed

Littleville's unemployment rate = number of unemployed / total labor force = 50 / (600 + 50) = 50 / 650 = 7.69%