By definition, the labor force participation rate is
A) the percentage of institutionalized working-age individuals who are employed or seeking employment.
B) the percentage of noninstitutionalized working-age individuals who are employed or seeking employment.
C) the annual rate of growth in the number of people who are either employed or searching for available jobs.
D) the annual rate of growth in the number of people who are unemployed and searching for available government-provided unemployment benefits.

Question

Quizplus · Accepted Answer

The labor force participation rate is the percentage of noninstitutionalized working-age individuals who are employed or seeking employment. Institutionalized individuals are excluded from the labor force because they are not available for work, while noninstitutionalized individuals who are not employed or looking for work are also excluded from the labor force. Therefore, the labor force participation rate measures the active portion of the population who are either working or actively seeking employment. Choices A), C), and D) do not accurately define the labor force participation rate.

By Definition, the Labor Force Participation Rate Is