The total population is 200 million population age 15 and older is 150 million and they’re 97 million people employed the labour force participation rate is 70%. The labour force is
The correct answer and explanation is:
Correct Answer:
To find the labour force, we use the Labour Force Participation Rate (LFPR) formula: Labour Force Participation Rate=Labour ForcePopulation Age 15 and Older×100\text{Labour Force Participation Rate} = \frac{\text{Labour Force}}{\text{Population Age 15 and Older}} \times 100
We are given:
- Population age 15 and older = 150 million
- LFPR = 70%
Rearranging the formula to solve for Labour Force: Labour Force=LFPR×Population Age 15 and Older100\text{Labour Force} = \frac{\text{LFPR} \times \text{Population Age 15 and Older}}{100} Labour Force=70×150 million100=105 million\text{Labour Force} = \frac{70 \times 150\,\text{million}}{100} = 105\,\text{million}
Labour Force = 105 million
Explanation (approx. 300 words):
The labour force of an economy consists of all individuals aged 15 or older who are either employed or actively looking for work (unemployed but seeking employment). It does not include people who are not working and are not seeking work, such as retirees, students, homemakers, or discouraged workers who have stopped looking for jobs.
In this scenario, the total population is 200 million, but we focus only on the working-age population—those aged 15 and older—which is 150 million. This is the base for calculating the Labour Force Participation Rate (LFPR), which indicates the percentage of the working-age population that is either working or actively looking for work.
Given that the LFPR is 70%, this means that 70% of the 150 million working-age individuals are part of the labour force. Using the formula: Labour Force=70% of 150 million=105 million\text{Labour Force} = 70\% \text{ of } 150 \text{ million} = 105 \text{ million}
This labour force includes both the employed (97 million) and the unemployed who are actively looking for jobs (in this case, 105 million – 97 million = 8 million unemployed).
This metric is important for economists and policymakers because it gives insight into how many people are contributing to the economy through work or seeking employment. A higher participation rate typically signals a more engaged working-age population, while a lower rate may indicate issues such as lack of job opportunities, discouraged workers, or demographic shifts like an aging population.