Table 29-2
Suppose people in the adult population in a small country are classified based on their age.

Labor Force Status

Age

Less than 55
55 and Older

Number employed 400,000 100,000
Number unemployed 25,000 7,000
Number in population 600,000 200,000

Refer to Table 29-2. In the proper order, which age group has the highest unemployment rate and which has the highest labor-force participation rate?

Question

Table 29-2
Suppose people in the adult population in a small country are classified based on their age.

​

Labor Force Status

Age

Less than 55
	55 and Older

Number employed	 400,000	 100,000
Number unemployed	25,000	7,000
Number in population	600,000	200,000

​

Refer to Table 29-2. In the proper order, which age group has the highest unemployment rate and which has the highest labor-force participation rate?

BlackTom AI · Accepted Answer

To tackle this table, we first compute two key measures for each age group: unemployment rate and labor-force participation rate.

Option 1: 55 and older, under 55
- For 55 and older: labor force = employed + unemployed = 100,000 + 7,000 = 107,000; unemployment rate = 7,000 / 107,000 ≈ 6.54%; participation rate = 107,000 / 200,000 = 53.5%.
- For under 55: labor force = 400,000 + 25,000 = 425,000; unemployment rate = 25,000 / 425,000 ≈ 5.88%; participation rate = 425,000 / 600,000 ≈ 70.83%.
- Conclusion for this option: the higher unemployment rate belongs to the 55 and older group, while the higher labor-force participation rate belongs to the under-55 group. This combination matches the described results.

Option 2: 55 and older, 55 and older
- This would imply the same group is both highest unemployment and highest participation, which is inconsistent with the calculated rates (unemployment is higher in 55+ than in under-55, but participation is higher in under-55).

Option 3: Under 55, under 55
- This would claim the under-55 group has both the highest unemployment rate and the highest participation rate. The unemployment rate in under-55 is lower than in 55 and older, and the participation rate is actually higher for under-55, but comparing unemployment between groups shows 55+ is higher, so this option mislabels the unemployment ranking.

Option 4: Under 55, 55 and older
- This pairing suggests under-55 has the highest unemployment rate and 55 and older has the highest participation rate. As computed, the 55+ group has the higher unemployment rate, not under-55, while the under-55 group does have the higher participation rate. The specific pairing here is incorrect for unemployment ranking.

Across all options, the underlying calculations show clear separation: the 55 and older group has the higher unemployment rate (≈6.54% vs ≈5.88%), and the under-55 group has the higher labor-force participation rate (≈70.83% vs ≈53.5%).

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