Unemployment rate question? (1 Viewer)

[Bobbo1]

Data (CSSA 2011 - q21)

Year / Unemployment:
1 - 1063000
2 - 1128000
3 - 1186000

Q: Calculate the rate of change on unemployment from year 2 to year 3 (show working):

My working was: Change = (1186000-1128000/1186000) x 100% = 4.89%

But in the answer it is 1128000/58000 = 5.1%

Can someone explain this to me??

 

[fiesycal]

Its the difference in unemployment between year 2 and 3 divided by the unemployment in year 2. Because it change from Year 2. What you did was put it all over Year 3 which is wrong.

(1186000-1128000/1128000) x 100 = (58000/1128000) x 100 = 5.1%

 

[determine]

Data (CSSA 2011 - q21)

Year / Unemployment:
1 - 1063000
2 - 1128000
3 - 1186000

Q: Calculate the rate of change on unemployment from year 2 to year 3 (show working):

My working was: Change = (1186000-1128000/1186000) x 100% = 4.89%

But in the answer it is 1128000/58000 = 5.1%

Can someone explain this to me??

Okay, so the reason why you've gotten the wrong answer is because the denominator you have used in the question is incorrect. Whenever you do a rate of change type question, think back to your formulas for things like economic growth and inflation. It's always current year - previous year, all over the previous year.

So in this case, it'd be [(1186000 - 1128000)/1128000] x 100 = 5.1%

Hope that helps!

 

[Bobbo1]

Ahh yes, got to remember that i was always get them mixed up, thanks guys!

 

[determine]

Ahh yes, got to remember that i was always get them mixed up, thanks guys!

Not a problem!! Just think about it this way - if you're trying to see how it changed, you should be comparing back to what it started with, i.e. the previous year!