CA Foundation · Business Economics · Indian Economy
In a district, the labour force is 50,000 persons and 46,000 of them are employed. Later, 2,000 discouraged unemployed persons stop seeking work and leave the labour force, while employment stays unchanged. What is the new unemployment rate, to the nearest one decimal place?
The new unemployment rate is about 4.2%. Unemployed persons fall from 4,000 to 2,000 and the labour force shrinks to 48,000, so the rate is 2,000 divided by 48,000. The rate falls only because discouraged workers left the labour force, not because jobs were created.
- A8.0%
- B4.2%Correct
- C4.0%
- D8.7%
Explanation
Initially unemployed = 50,000 − 46,000 = 4,000 (8%). After 2,000 leave, the labour force is 48,000 and unemployed are 2,000. Rate = 2,000/48,000 × 100 = 4.17%, about 4.2%. Option 4.0% wrongly divides by the original 50,000. Option 8.0% is the old rate, ignoring the change.
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