Answer:
The unemployment rate is 8.3%
Explanation:
The formula for computing the unemployed rate is as follows:
Unemployed rate = Number of Unemployed persons / Labor Force
The labor force is the aggregate of the unemployed and the employed persons. So, through dividing the number of the persons who are unemployed through labor force.
In this case, it is computed as:
Number of unemployed persons is 0.25 million
Labor force = Population × Participation rate
= 4 million × 75%
= 3
Therefore, the unemployment rate is as:
Unemployment rate = 0.25 / 3
= 8.3%
