How is the labour-force participation rate computed?
A) as the number of adults in the labour force divided by the adult population times 100
B) as the number of adults in the labour force divided by the number of unemployed times 100
C) as the number of adults in the labour force divided by the unemployment rate times 100
D) as the number of adults in the labour force times the participation rate times 100

Question

Quizplus · Accepted Answer

The labour-force participation rate is calculated as the number of adults in the labour force divided by the adult population (excluding those in institutions such as prisons or nursing homes) and then multiplied by 100 to get a percentage. This is commonly used as an indicator of the proportion of the population that is actively engaged in the labour market.

How Is the Labour-Force Participation Rate Computed