Question

Suppose the civilian noninstitutional population equals 100,000; there are 62,600 employed persons and 8,100 unemployed persons. How many people are not in the labor force? Show your work.

Answer 1

0.293 or 29.3%

Step-by-step explanation:

civilian noninstitutional population = 100,000

Employed persons = 62,600

Unemployed persons = 8,100

Labor force participation rate = ( Employed + Unemployed ) / Civilian noninstitutional population

Labor force participation rate = ( 62,600 + 8,100 ) / 100,000

Labor force participation rate = 0.707 = 70.7%

people are not in the labor force = 1 - 0.707 = 0.293 = 29.3%