Suppose there are currently 100 people unemployed, 1,500 people employed, and 2,000 people in the working age population. The labor force participation rate equals 100 times
A) 100/1,500.
B) 100/1,600.
C) 1500/2,000.
D) 1600/2,000.

Question

Quizplus · Accepted Answer

The labor force participation rate is calculated as the labor force divided by the working age population, then multiplied by 100. The labor force includes both employed and unemployed individuals, so in this case, it is 1,500 (employed) + 100 (unemployed) = 1,600. The working age population is 2,000. Therefore, the labor force participation rate is (1,600 / 2,000) * 100.

Suppose There Are Currently 100 People Unemployed, 1,500 People Employed