Quote:
Originally Posted by slapass
Labor Force Participation Rate = (Labor Force / Total Population over Age 16) * 100
EXACTLY! So the retired people are not in the labor force. They are in the Total Population.
10 people over 16 - This our total population.
2 are retired. So they don't count in the labor force. 10-2=8.
The labor force has 8.
(8/10)*100
Labor Force Participation Rate = 80% .
You can see how if lots of folks retire, it effects our final answer.
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Sorry looking back I see you were correct in the original post in how you figured that. But what I think they did was create a new category. We will call it category E. People who quit looking for work. This group of people were put into the excluded participation group. But once they got a job they are automatically back in the labor force. That's why we see the huge increase/decline rather than gradual and good unemployment numbers under Obama.