In an economy, 40 million people are employed, 2 million are unemployed, and 8 million are not in the labor force. What is the labor force participation rate?

Question

Quizplus · Accepted Answer

The labor force participation rate is the percentage of the population that is either employed or unemployed. In this case, the labor force is 40 million + 2 million = 42 million. The population is 40 million + 2 million + 8 million = 50 million. Therefore, the labor force participation rate is 42 million / 50 million * 100 = 84%.

In an Economy, 40 Million People Are Employed, 2 Million