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31 May, 07:35

Suppose the civilian noninstitutional population equals 100,000; there are 62,600 employed persons and 8,100 unemployed persons. How many people are not in the labor force? Show your work.

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  1. 31 May, 09:52
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    0.293 or 29.3%

    Explanation:

    civilian noninstitutional population = 100,000

    Employed persons = 62,600

    Unemployed persons = 8,100

    Labor force participation rate = (Employed + Unemployed) / Civilian noninstitutional population

    Labor force participation rate = (62,600 + 8,100) / 100,000

    Labor force participation rate = 0.707 = 70.7%

    people are not in the labor force = 1 - 0.707 = 0.293 = 29.3%
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