If the labour force participation rate is 85 percent, what is the size of the labour force if I have these information: Total population                                                                                    80 million Working-age population                                                                       75 million Unemployed                                                                                         8 million

Expert Answers

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The labor force participation rate is defined as the ratio of labor force to the working age population, multiplied by 100. Mathematically,

labor force participation rate = 100 x (labor force/working age population)

In the given question, the working age population is 75 million and the labor force participation rate is 85%, thus the labor force size is:

Size of labor force = Labor force participation rate x working age population / 100    = 85 x 75/100 =  63.75 million people.

Thus, the size of the labor force is 63.75 million people.

Of this labor force, 8 million people are unemployed, thus only 55.75 million (= 63.75 - 8) people are employed. 

The labor force includes the population that is either employed or in search of employment (even if it is currently unemployed).

 

Hope this helps. 

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