Participation Rate of Labor Force
It will include those people who are willing to go for job in labor force which is divided by the population of working age that can be multiplied to 100. In the year
Labor force =153.7 million
Population of working age=237.7 million
By above equation we get=64.7 million which isparticipation rate of labor force as described in Fig 5.3. It will show such conditions where job seekers who are not getting success in their job left labor force at recession time and then join again in expansion period.
If there is any change in participation rate of labor force in business cycles which states those people who have left labor force at the recession time will be considered as people who have no job or counted not under labor force.
It is believed by the Bureau of Labor Statistics (BLS) that unemployment definition will state the measurement of employment rate in correct form. Two types has been described by BLS which includes
- Workers which are marginally attached
- Workers working on part time wish for full time job
Workers which are marginally attached
These are workers who are not working and are in search for work but they have indicated that they will work and had worked in past also. These workers have stopped in looking for job because they are not getting the suitable one which can describe as discouraged workers. They are excluded from workers which are marginally attached, because they have not tried to search the job from last weeks. They are people who have no job in all these cases.