If the number of unemployed equals 30,000, the number of employed equals 60,000, and the number not in the labor force is 10,000, the labor-force participation rate
A) is 90%.
B) is 88.9%.
C) is 67%.
D) cannot be determined from this information.

Question

Quizplus · Accepted Answer

The labor-force participation rate is calculated as the labor force (the sum of employed and unemployed) divided by the total working-age population (labor force plus those not in the labor force) times 100. Here, the labor force is 90,000 (60,000 employed + 30,000 unemployed), and the total working-age population is 100,000 (90,000 in the labor force + 10,000 not in the labor force). Thus, the labor-force participation rate is (90,000 / 100,000) * 100 = 90%.

If the Number of Unemployed Equals 30,000, the Number of Employed