The participation rate equals
A) $\frac { \text { number unemployed } } { \text { total working age population } }$.
B) $\frac { \text { labour force } } { \text { total working age population } }$.
C) $\frac { \text { number unemployed } } { \text { labour force } }$.
D) $\frac { \text { labour force } } { \text { number unemployed } }$.
E) $\frac { \text { number employed } } { \text { total working age population } }$.

Question

Quizplus · Accepted Answer

The participation rate measures the proportion of working-age population that is in the labor force, which includes both employed and unemployed individuals. Therefore, the participation rate is calculated as the labor force divided by the working-age population. The labor force consists of both employed and unemployed individuals who are seeking employment. Option A calculates the unemployment rate, not the participation rate. Option C calculates the proportion of unemployed individuals in the labor force, not the participation rate. Option D is the reciprocal of the unemployment rate and not the participation rate. Option E calculates the employment rate, not the participation rate.

The Participation Rate Equals A) number unemployed total working age population \frac { \text { number unemployed } } { \text { total working age population } } total working age population number unemployed ​

The Participation Rate Equals
A) $\frac { \text { number unemployed } } { \text { total working age population } }$