What is the difference between the employment rate and the labor force participation rate?
The labor force participation rate includes both the number of employed persons and the number of unemployed persons in its numerator, while the employment rate only includes the number of employed persons. 8. If the unemployment rate is 4 percent, it does not follow that the employment rate is 96 percent. Explain why. The unemployment rate is calculated by dividing the number of unemployed persons by the civilian labor force, but the employment rate is calculated by dividing the number of employed persons by the civilian noninstitutional population. Since they have different denominators, the sum of the fractions would not normally equal one. 9. What criteria must be met in order for a person to be characterized as being unemployed? To be characterized as unemployed, one must either (a) not have a job but made specific active efforts to find a job during the reference period and were available for work, or (b) is not working but is waiting to be called back to a job from which they ha
