Question

A country has a noninstitutionalized population of 243 million people. Out of that number, 38 million are under the age of 16 70 million are full-time students and retirees 8 million are unemployed workers 31 million are underemployed 96 million are employed full-time What is the labor force participation rate?

Answer 1

Answer:

66%

Explanation:

• Students & retirees are not considered as part of Labor force

• people are under 16 age , are not part of working age population

• underemployed people are doing part time jobs, so counted as employed

Total employed = Employed full time + Underemployed

                          = 96 + 31

                          = 127 million

Unemployed workers = 8 million

Labor force size = employed + unemployed people

                           = 127 million + 8 million

                           = 135 million

Working age population:

= Total non-institutionalized population - People under age of 16

= 243 - 38

= 205 million

Therefore,

Labor force participation rate:

= (Labor force size ÷ Total non institutionalized population) × 100

= (135 ÷ 205)  × 100

= 66%