The Bureau of Labor Statistics reported in 2005 that there were 50.40 million people over age 25 whose highest level of education was some college or an associate degree, 33.86 million of whom were employed and 1.27 million of whom were unemployed.
What were the labor-force participation rate and the unemployment rate for this group?

a) 69.7% and 2.5%
b) 69.7% and 3 6%
c) 67.2% and 2.5%
d) 67 2% and 3.6%

B. 69.7% and 3.6%

Explanation:

Given that

Total population of people who are able to work = 50.40 million

Total.employed = 33.86 million

Total unemployed = 1.27 million.

Recall that

Labor force participation rate = (people actively participating in labour/ total number of people eligible to participate) × 100

Where

People actively participating in labour = employed + unemployed

Thus,

= 33.86 + 1.27

= 35.13 million

Therefore,

Labour force participation rate = (35.13/50.40) × 100

= 0.6970 × 100

= 69.7%

Also,

Recall that

Unemployment rate = unemployed/labour force × 100

Where,

Labour force = 35.13

= 1.27/35.13 × 100

= 0.0361 × 100

= 3.6%

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