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What is the labor force participation rate

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Consider a country with 300 million residents, a labor force of 150 million, and 10 million unemployed. Answer the following questions: (show your work for credit)

  • What is the labor force participation rate?
  • What is the unemployment rate?
  • If 5 million of the unemployed become discouraged and stop looking for work, what is the new unemployment rate?
  • Suppose instead that 30 million jobs are created and this attracts 20 million new people into the labor force. What would be the new rates for labor force participation and unemployment?

Reference no: EM131277804

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