Question

The workforce participation rate of a country is 60%. This country has a population of 100 million, of which 6 million are unemployed. The unemployment rate for this country is

• A. $\dfrac{2}{11}$
• B. $\dfrac{1}{11}$
• C. $\dfrac{3}{50}$
• D. $\dfrac{1}{10}$

Hint:

Unemployment rate = (Unemployed / Labour force) × 100. Labour force = population × participation rate.

Answer 1

The Correct Option is B

Step 1: Identify given data.
Population = 100 million. Workforce participation rate = 60% $\Rightarrow$ Labour force = 60 million. Unemployed = 6 million.
Step 2: Compute unemployment rate.
\[ \text{Unemployment rate} = \frac{\text{Unemployed}}{\text{Labour force}} = \frac{6}{60} = \frac{1}{10}. \] Wait — but 60 million working population minus 6 million unemployed = 54 million employed. Thus, unemployment rate = $\frac{6}{60} = 0.1 = 10% = \frac{1}{10}$. Hence, correct answer is (D).