Which of the following explains the labour force participation rate?
A) When workers become unemployed, the labour force participation rate declines.
B) When the unemployed become discouraged workers, the labour force participation rate declines.
C) When workers are NOT fully using their skills, the labour force participation rate decreases.
D) Since the 1950s the labour force participation rate of women has decreased in Canada.

Question

Which of the following explains the labour force participation rate?  
A) When workers become unemployed, the labour force participation rate declines. 
B) When the unemployed become discouraged workers, the labour force participation rate declines. 
C) When workers are NOT fully using their skills, the labour force participation rate decreases. 
D) Since the 1950s the labour force participation rate of women has decreased in Canada.

Quizplus · Accepted Answer

The labour force participation rate measures the proportion of the working-age population (those aged 15 and over) who are either employed or unemployed and actively seeking work. When the unemployed become discouraged workers (those who have given up looking for work), they are no longer included in the labour force, which decreases the labour force participation rate.

Which of the Following Explains the Labour Force Participation Rate