Question

The nation of Finlandia has 120,000 people. Of these, 20,000 are children under 16, 72,000 have jobs, 8,000 don't have jobs but are looking for work, and 20,000 are retired. With this info, calculate the labor force participation rate and the unemployment rate.

Answer 1

Answer: labor force participation rate  =60%

unemployment rate = 6.67%

Step-by-step explanation:

The labor force participation rate is computed as

$\text{labor force participation rate}=\dfrac{\text{Total employed persons}}{\text{Total population}}$

i.e. $\text{labor force participation rate}= \dfrac{72000}{120000}$

$= 0.6\ or\ 60 \%$

The unemployment rate is computed as:

$\text{unemployment rate}=\dfrac{\text{Number of personsdon't have jobs }}{\text{Total population}}\\\\\text{unemployment rate}=\dfrac{8000}{120000}\\\\\text{unemployment rate}=0.0667\ or\ 6.67\%$

Hence, labor force participation rate  =60%

unemployment rate = 6.67%