In March, 2006 the labor department of the country of Jobland determined that the size of the labor force was 102 million out of which 94 million were employed. In May 2006, the labor department determined that 1.0 million people became "discouraged workers" in April. Assuming that no new jobs were created between March and April, calculate the unemployment rate for March and April. Jobland unemployment rate in March = nothing percent. (Enter your response rounded to one decimal place.) Jobland unemployment rate in April = nothing percent. (Enter your response rounded to one decimal place.)

Unemployment Rate for March and April:

March unemployment rate = Unemployed/Labor Force x 100 = (102-94)/102 x 100 = 8/102 x 100 = 7.8%

April unemployment rate = (102 - 94)/102 x 100 = 8/102 x 100 = 7.8%

Explanation:

a) The unemployed equals the Labor Force minus the employed.

b) In April, the unemployed did not increase from 8 million to 9 million because of the discouraged workers.  It remained the same figure as in March.

Discouraged workers are those who are unemployed but have stopped looking for employment after a long time of unemployment, but would have preferred to be working.  Since they stopped actively job-hunting, they are regarded as discouraged workers.  They still want to work, but are unable to find work and as a result, decide to stop looking.

answer a is correct answer

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