The labour force participation rate equals the
A)(number of employed divided by the labour force)× 100.
B)(labour force divided by the number of people not in the labour force)× 100.
C)(labour force divided by working-age population)× 100.
D)(labour force divided by the total population)× 100.
E)(working age population divided by employment)× 100.

Question

Quizplus · Accepted Answer

The labour force participation rate is defined as the percentage of the working-age population (people between 15 and 64 years old) who are either employed or actively seeking employment. Therefore, the correct formula is (labour force divided by working-age population)× 100, which is option C. Option A is incorrect as it only calculates the employment rate, not the participation rate. Option B is mathematically incorrect as it divides the labour force by the number of people who are not in the labour force, instead of dividing by the total working-age population as it should. Option D is incorrect as it divides the labour force by the total population, which includes individuals who are not in the working-age population. Option E is also incorrect as it divides the working-age population by employment, which is not the correct formula.

The Labour Force Participation Rate Equals the