Given a total population of 5,000 residents and a labor force of 4,000 residents, 3500 of which are employed, what is the unemployment rate?
The unemployment rate can be calculated by dividing the number of unemployed individuals by the total labor force, and then multiplying by 100 to express it as a percentage.
Number of employed individuals = 3500
Total labor force = 4000
Number of unemployed individuals = Total labor force - Number of employed individuals
Number of unemployed individuals = 4000 - 3500
Number of unemployed individuals = 500
Unemployment rate = (Number of unemployed individuals / Total labor force) * 100
Unemployment rate = (500 / 4000) * 100
Unemployment rate = (0.125) * 100
Unemployment rate = 12.5%
Therefore, the unemployment rate is 12.5%.