Question

If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment rate is 4%, what is the labor force participation rate

Answer 1

Answer:

The percentage of the population that is actively participating in the labor market, whether working or looking for a job, is 95% of the total working age population.

Explanation:

If the number of unemployed in a country is 19 million people, and that number represents an unemployment rate of 4%, to know the total number of economically active people in the country we must perform the following calculation:

(19,000,000 / 4) x 100 = X

475,000,000 = economically active population

However, the country has a working-age population of 500 million people, of which only 475 are actively participating in the labor market. To know the percentage that these 475 million people represent, we must perform the following cross multiplication:

500 = 100

475 = X

(475 x 100) / 500 = X

95 = X

The percentage of the population that is actively participating in the labor market, whether working or looking for a job, is 95% of the total working age population.