What is the name of the measure equal to (Labour force ÷ Working-age population) × 100, expressing the share of working-age people who are in the labor force?

• A. Labour force participation rate
• B. Unemployment rate
• C. Participation rate
• D. Employed rate

Answer: (A)

This measures the portion of the working-age population that is engaging with the labor market. The labour force participation rate is defined as the labour force divided by the working-age population, times 100. The labour force includes people who are employed and those who are unemployed but actively seeking work. This distinguishes it from the unemployment rate, which is the share of the labour force that is unemployed, and from an employed-rate concept that would look at employed people as a share of the working-age population. The term we’re after here is Labour force participation rate, which precisely captures the idea of how many working-age people are in the labor force.