If the number of unemployed workers is 2 million, the number of employed workers is 50 million, and the working-age population is 80 million, what is the labor force participation rate? Select one: a

Economics Nov 21, 2020

If the number of unemployed workers is 2 million, the number of employed workers is 50 million, and the working-age population is 80 million, what is the labor force participation rate? Select one:

a. 60%

b. 40%

c. 65%

d. 50%

Expert Solution

Solution -

Number of unemployed worker is 2 million.

Number of employed workers is 50 million.

Working age population is 80 million.

The labour force participation rate is a measure of an economy's active workforce.

So,

Labour force participation rate = (sum of all workers employed + sum of all workers unemployed) ÷ working age population ×100

= (50 + 2) ÷ 80 × 100

= 65 %

Answer - labour force participation rate is 65 %.

Option c. 65% is correct

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