The fraction of the working-age population that is in the labor force is called the
A) employment rate.
B) unemployment rate.
C) labor force participation rate.
D) nonresponse rate.

Question

Quizplus · Accepted Answer

The labor force participation rate is defined as the percentage of the working-age population that is either employed or actively seeking employment. A is incorrect because the employment rate only measures the percentage of the working-age population that is currently employed. B is incorrect because the unemployment rate only measures the percentage of the labor force that is without work but actively seeking employment. D is incorrect because the nonresponse rate is not related to measuring employment or labor force data.

The Fraction of the Working-Age Population That Is in the Labor