Suppose that in a given month in France, there are 18 million people of working

Question

Suppose that in a given month in France, there are 18 million people of working age. Of these, only 14 million have jobs. Of the remainder, 2 are looking for work, 1.5 million have given up looking for work, and 0.5 million do not want to work.

What is the labour force and labour force participation rate? What is the official unemployment rate?

I said the labour force is 16 million, 14m + 2 m looking for work. The labour force participation rate is 89% (from 16m/18m). I'm having issues calculating the official rate of unemployment. I'm estimating it is about 14%, as 2m/14m is .14

Thanks in advance for your help!

Explanation / Answer

The labour force is only made up of people working, or actively looking for work. Therefore, labour force = 16 million The labour force participation = labour foce/available people Therefore, labour force participation = 16/18 = 88.9% (rounded to 3 significant figures)

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