Question

Orsinia has adopted the framework used by the US Bureau of Labor Statistics to calculate its labor force statistics. Following information is extracted from a database maintained by the country's ministry of labor:

Total population

24,512,311

Military personnel

98,539

People below 16 years of age

4,240,102

People in elderly care centers

1,232,130

People who didn't look for job in last 4 weeks

831,304

House wives whose sole activity is home-making

3,424,204

Volunteers

313,200

Self-employed people

3,423,042

Calculate labor force participation rate.

Answer 1

Step 1 - Find the Civilian working-age population

Civilian working age population = Total population - Military personnel - People below 16 years of age - People in elderly care centers

Civilian working age population = 24,512,311 - 98,539 - 4,240,102 - 1,232,130 = 18,941,540

The civilian working age population is 18,941,540

Step 2 - Find the labor force

Labor force = Civilian working age population - People who did not look for job in last 4 weeks - Housewives whose sole activity is home making - Volunteers

Labor force = 18,941,540 - 831,304 - 3,424,204 - 313,200 = 14,372,832

The labor force is 14,372,832

Step 3 - Find the Labor force participation rate -

Labor force participation rate = [Labor force/Civilian working age population] * 100

Labor force participation rate = [14,372,832/18,941,540] * 100 = 75.88%

The Labor Force Participation Rate is 75.88%