Which of the following is true about labor force participation?
A)When workers become unemployed,the labor force participation rate declines.
B)When the unemployed become "discouraged workers," the labor force participation rate declines.
C)When workers are not fully using their skills,the labor force participation rate decreases.
D)Since the 1950s the labor force participation rate of women has decreased in the United States.
E)The trend toward earlier retirement has increased the labor force participation rate in the United States.

Question

Quizplus · Accepted Answer

When the unemployed become "discouraged workers," they give up looking for employment and are no longer counted in the labor force, which leads to a decline in the labor force participation rate. Option A is incorrect because labor force participation includes both employed and unemployed workers. Option C is incorrect because the labor force participation rate is a measure of the percentage of the working-age population that is employed or seeking employment, irrespective of whether or not they are using their skills. Option D is incorrect because since the 1950s, the labor force participation rate of women has increased significantly. Option E is incorrect because the trend toward earlier retirement has led to a decline in the labor force participation rate.

Which of the Following Is True About Labor Force Participation