If the labour force participation rate is rising and the working-age population is not changing, then the
A)size of the labour force is rising.
B)number of unemployed people is rising and the size of the labour force is falling.
C)size of the labour force is falling.
D)number of unemployed people is falling and the size of the labour force is rising.
E)number of employed people must be increasing.

Question

Quizplus · Accepted Answer

The labour force participation rate measures the percentage of the working-age population that is either employed or actively seeking employment. If the participation rate is increasing, this means more people are entering the labour force (i.e. actively seeking employment) or remaining in the labour force (i.e. not retiring or exiting the labour force for other reasons). If the working-age population is not changing, this means the population of potential labour force participants is not growing or shrinking. Therefore, the only possibility is that the size of the labour force (which is the sum of the employed and unemployed) is rising.

If the Labour Force Participation Rate Is Rising and the Working-Age