How is the labour-force participation rate defined?
A) (Employed ÷ Adult population) × 100
B) (Employed ÷ Labour force) × 100
C) (Labour force ÷ Adult population) × 100
D) (Adult population ÷ Labour force) × 100

Question

Quizplus · Accepted Answer

The labour-force participation rate is defined as the proportion of the adult population that is in the labour force. Therefore, the formula for calculating it is (Labour force ÷ Adult population) × 100, which matches option C. Option A divides the employed by the adult population instead of considering both employed and unemployed who are actively seeking work as the labour force, thus it is incorrect. Option B divides the employed by the labour force, which does not reflect the proportion of the adult population that is working, making it incorrect. Option D reverses the numerator and denominator of the correct formula, thus it is incorrect.

How Is the Labour-Force Participation Rate Defined