The level of labor force participation will be higher as the number of unemployed workers is lower.

Question

Quizplus · Accepted Answer

Labor force participation rate is determined by the number of people who are either employed or actively looking for work, not by the number of unemployed workers alone. A lower number of unemployed workers does not necessarily mean a higher labor force participation rate if many people are not participating in the labor force (e.g., due to retirement, studying, or discouragement from job seeking).

The Level of Labor Force Participation Will Be Higher as the Number