The labor-force participation rate is computed as
A)(Employed ÷ Adult Population) ×100.
B)(Employed ÷ Labor Force) × 100.
C)(Labor Force ÷ Adult Population) × 100.
D)(Adult Population ÷Labor Force) × 100.

Question

Quizplus · Accepted Answer

The labor-force participation rate is the portion of the adult population that is in the labor force, and is thus given by the (Labor Force ÷ Adult Population) × 100. Option (A) is incorrect because it includes individuals who are not part of the labor force in the calculation. Option (B) is incorrect because it divides the employed by the labor force, which gives the employment rate, not the labor-force participation rate. Option (D) is incorrect because it divides the adult population by the labor force, which is not a meaningful calculation.

The Labor-Force Participation Rate Is Computed as