Which of the following would cause a decline in the labor force participation rate?
|An increase in the number of discouraged workers in the country.|
|Many employed workers get laid off and now are looking for new jobs.|
|High wages entice retirees (those outside the labor force) to begin searching for work.|
|A decrease in the unemployment rate.|
Labor force participation rate = (Labor force/ working age population )100
An increase in the number of discouraged workers in the country would cause a decline in the labor force participation rate . Because as discouraged workers increase , labor force decline (which is labor force= unemployed +employed ,when discouraged workers increases ,then the number of labor force will decline). Therefore , labor force participation rate would decline. Hence, option(A) is correct.
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