Which term describes the share of the working-age population that is available for work by being either employed or actively seeking employment?

• A. Unemployment
• B. Labour Force
• C. Underemployment
• D. Participation rate

Answer: (D)

Think about how many people of working age are actually taking part in the job market. The participation rate is the share of the working-age population that is either employed or actively seeking work. It shows how engaged the eligible population is with work, not just how many are unemployed or how many have jobs. In formula terms, participation rate = (labour force / working-age population) × 100. This is different from unemployment, which is the portion of the labour force that isn’t working; from the labour force itself, which is a count, not a share; and from underemployment, which refers to people who are employed but want more hours or better work.