A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country's labor force participation rate?

Question

Quizplus · Accepted Answer

The labor force is made up of adults who are interested in working and those who are currently working, whether part-time or full-time. That is 20 million adults (30 million - 5 million - 5 million). Therefore, the labor force participation rate is the number of people in the labor force divided by the total adult population. 
Labor force participation rate = (20 million / 30 million) x 100% = 66.7%

A Country Has 50 Million People, 30 Million of Whom