Question

Assume the following for the town of Boone: The town has a total population of 60,000 people, of which 2,000 are under 16 years of age or are institutionalized; 4,000 are full-time students who are not employed and are not seeking work; and 50,000 are employed. The rest of the people are out of work but have been actively seeking work within the past four weeks. What is Boone's unemployment rate?

Answer 1

Unemployment rate= 7.4%

Step-by-step explanation:

First, we need to calculate the labor force. The labor force is the sum of employed people and unemployed people over 16 actively looking for work.

Labor force= 60,000 - 2,000 - 4,000= 54,000

Now, we can calculate the unemployment rate, using the following formula:

unemployment rate= (unemployed people / labor force)*100

unemployment rate= (4,000/54,000)*100

unemployment rate= 7.4%