Consider an economy with an adult population of 100, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired.What is the labour force participation rate?

Question

Quizplus · Accepted Answer

The labor force participation rate is calculated by dividing the labor force (those working plus those looking for work) by the total adult population and then multiplying by 100. Here, the labor force is 50 (working) + 10 (looking for work) = 60. The total adult population is 100. So, the labor force participation rate is (60/100) * 100 = 60 percent.

Consider an Economy with an Adult Population of 100, 50