Suppose an economy consists of 500,000 individuals 16 years and older, 260,000 are employed, and 21,000 are unemployed but actively seeking work. in this example the labor force participation rate is approximately
labour force participation includes number of people who are employed or those people who are actively seeking work labour force participation= labour force divided by total eligible population thus labour force participation = [tex](260000 + 21000) \div 500000[/tex] =0.562 ((multiply by 100 to get in percentage))
