The labour-force participation rate is computed as
A) (Employed divided by Adult Population) x 100.
B) (Employed divided by Labour Force) x 100.
C) (Labour Force divided by Adult Population) x 100.
D) (Adult Population divided by Labour Force) x 100.

Question

Quizplus · Accepted Answer

The labour-force participation rate is computed by dividing the labour force (which includes both employed and unemployed individuals) by the adult population (those who are of working age and not institutionalized). Multiplying the result by 100 gives us the percentage, which represents the proportion of the adult population that is either employed or actively seeking employment. Therefore, the correct formula is (Labour Force divided by Adult Population) x 100.

The Labour-Force Participation Rate Is Computed as