To calculate the rate of unemployment in this case, it is important to first get labor force, number of the unemployed, number of the employed before and after the growth.
The labor force is 60% of the population above 15.
So labor force: 60% ×20m= 12 Million
The people who are unemployed: 5% × 12M= 0.6M
Therefore, the number of people employed is 12M – 0.6M = 11.4 M
If the labor force grows by 3%. The increase in labor force is; 3% × 12M=0.36M
The new labor force will be; 12M + 0.36M= 12.36M
If employment grows by 2%. The increase in employment is 2% × 11.4M= 0.228M
The number of people employed will be; 11.4M + 0.228M= 11.628M
People unemployed is; 12.36M- 11.628M = 0.732M
The formula for unemployment rate is;
People unemployed/ Total Labor force × 100%
= 0.732/12.36 × 100
Therefore, the unemployment rate would become 5.9 %.