Given the information below, calculate the unemployment rate in Country Z.

Question

• Total population: 50 million

• Population aged 15–65 years: 35 million

• Number of people employed: 25 million

Answer 1

The formula for unemployment rate is: Unemployment Rate = Number of Unemployed Persons / Labor Force.

In this example:

Number of unemployment persons: 10 million

Labor Force: 35 million

Unemployment rate: 28.57%