Question

Category	Number of people (millions)
Institutionalized	14
Full-time workers	103
Less than 16 years of age	40
Armed forces (noncivilian)	20
Part-time workers	27
Total Population	314
Looking for work	16

Refer to the table above. What is the labor force participation rate for this economy? (Round to the nearest one-tenth of a percent.)

Answer 1

Answer-

Labor force participation rate = labor force /P × 100

Where, Labor force= labor force is the sum of people employed and unemployed. We doesn't consider institutionalized ,less than 16 years of age, armed forces people while calculating labor force.

Population = total eligible population includes people who are economically active and non economically inactive who also meet the criteria to be in labor force.

In this ques, first we have to calculate labor force and population.

Labor force = full time workers + part time workers + looking for work

= 103 + 27 + 16 = 146

Population = total population - armed forces - institutionalized - less than 16 years of age

= 314 - 20 - 14 - 40 = 240

Labor force participation rate = 146 /240 × 100

= 60.83 %