After a couple of months of searching for a job, Sofia is hired. Which of the following increases?

a. the labor force participation rate but not the labor force

b. the labor force and the labor force participation rate

c. the labor force participation rate but not the labor force

d. neither the labor force nor the labor force participation rate

Question

Alena Zhang

Business

28 November, 07:07

After a couple of months of searching for a job, Sofia is hired. Which of the following increases?

a. the labor force participation rate but not the labor force

b. the labor force and the labor force participation rate

c. the labor force participation rate but not the labor force

d. neither the labor force nor the labor force participation rate

+4

Answers (1)

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Stanley Sellers · Answer 1

After a couple of months of searching for a job, Sofia is hired. Neither the labor force nor the labor force participation rate increase.

Explanation:

The labor force is defined as the sum of all people employed people plus unemployed people who are looking for a job. Sofia was unemployed, but she was searching for a job, so according to the definition, she was and still is a part of the labor force.

Then, the labor force participation rate is defined as the rate of the labor force (defined above) divided by the working-age civilian population. Since Sofia never stopped being a part of the labor force since she had been looking for a job, the change of her employment status doesn't reflect any changes in the labor force participation rate.