Question

A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country's labor force participation rate? 83.3% 75% 50% 66.7%

Answer 1

66.7%

Explanation:

Given that

Total population = 50 million

Adults = 30 million

Those not interested in working = 5 million

Those interested in working but given up on searching = 5 million

Those searching = 5 million

Those working part time = 5 million

Those working full time = 10 million

Recall that

Labour force participation rate = (number of people actively participating in labour ÷ total number of people eligible) × 100

Number of people actively participating in labour = employed + unemployed

Employed = 10 million full time + 5 million part time

= 15 million

Unemployed = 5 million. Those searching.

Thus,

People actively participating in labour = 15 + 5= 20 million.

Total number of eligible people = total number of adults = 30 million

Therefore

Labour participation rate = (20/30) × 100

= 0.66667 × 100

= 66.6667

Approximately 66.7%