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

Question

Quizplus · Accepted Answer

The labor force participation rate is defined as the percentage of the working-age population (i.e. those aged 16 and over) that is either employed or actively seeking employment. Therefore, the correct formula is (labor force divided by working-age population)× 100. Option A is incorrect because it does not take into account the total population, including those not in the labor force. Option B is incorrect because it divides the labor force by the number of people not in the labor force, which does not make sense. Option D is also incorrect because it divides the labor force by the total population, including children and retirees who are not in the labor force.

The Labor Force Participation Rate Equals the