Question

When the labor force participation rate is declining, what does it imply?

A. Unemployed rate is rising faster than the population.
B. Percentage of the population that is outside the labor force is declining.
C. Percentage of the population that is willing and able to work is declining.
D. Percentage of the population that is employed is rising.

Answer 1

The declining labor force participation rate implies that the percentage of the population that is willing and able to work is declining.

Step-by-step explanation:

The declining labor force participation rate indicates that the percentage of the population that is willing and able to work is declining. This means that fewer people in the population are actively seeking employment or available for work. It does not necessarily imply that the unemployed rate is rising, as unemployed individuals may be leaving the labor force entirely.