Question

The composition of the adult population in an economy is as follows: Employed: 140 million; Unemployed: 10 million; Not in labour force: 50 million. The rate of unemployment is .......... % (rounded off to two decimal places).

Hint:

The unemployment rate is the percentage of the labour force that is unemployed and seeking work.

Answer 1

The formula for the unemployment rate is: \[ \text{Unemployment Rate} = \frac{\text{Number of Unemployed}}{\text{Labour Force}} \times 100 \] Where:
- Number of Unemployed = 10 million,
- Labour Force = Employed + Unemployed = 140 million + 10 million = 150 million.
Substitute the values into the formula: \[ \text{Unemployment Rate} = \frac{10}{150} \times 100 = \frac{1000}{150} = 6.67 \] Thus, the unemployment rate is 6.67%. Final Answer: \[ \boxed{6.67} \]