Which of the following would reduce the labour force participation rate, all else equal?
A)an increase in the number of people in the labour force
B)an increase in the unemployment rate
C)a decrease in the unemployment rate
D)an increase in the working-age population
E)an increase in minimum working age

Question

Quizplus · Accepted Answer

An increase in the working-age population would reduce the labour force participation rate if the number of people in the labour force does not increase proportionally, as the rate is calculated as the labour force divided by the working-age population.

Which of the Following Would Reduce the Labour Force Participation