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

Question

Quizplus · Accepted Answer

The labour force participation rate measures the proportion of the working-age population that is either employed or actively seeking employment. Therefore, it is calculated as the number of people in the labour force (those who are employed plus those who are unemployed but actively seeking work) divided by the adult population (those aged 16 or older) and multiplied by 100 to get a percentage. This is expressed as (Labour Force / Adult Population) * 100, which matches Option C. Option A is incorrect because it excludes those who are unemployed but actively seeking work, while Option B divides by the labour force instead of the adult population. Option D is incorrect because it would result in a percentage greater than 100 in most cases, which is not meaningful.

The Labour Force Participation Rate Is Computed as