The labor force participation rate is defined as the number of
A) unemployed individuals plus employed individuals divided by the number of individuals in the working-age population.
B) employed individuals divided by the number of individuals in the working-age population.
C) unemployed individuals plus employed individuals divided by the number of employed individuals.
D) employed individuals divided by the number of individuals employed plus the number of unemployed individuals.

Question

Quizplus · Accepted Answer

The labor force participation rate measures the percentage of the working-age population (individuals aged 16 and over) who are either employed or actively looking for work (unemployed). Therefore, the numerator should be the number of employed individuals plus the number of unemployed individuals, and the denominator should be the working-age population. Choice A correctly reflects this definition.

The Labor Force Participation Rate Is Defined as the Number