Labor force — Social Studies definition
People classified as employed or unemployed under the measure.
Where it is taught
- Business Cycles, Employment & Inflation — Measuring the Economy & Public Policy, Government, Civic Participation & Economics, Grade 12
In use
The unemployment rate uses the labor force as its denominator.
Business Cycles, Employment & Inflation
Questions using labor force
Problem 1
Answer and explanation
Unemployment is ten percent of the 100-person labor force. Inflation is five percent over the stated year. Neither measure uses the entire 140-person population as its denominator, and six index points are not six percent. The measures do not reveal every household’s work needs or exact purchase-price change; participation and distributional evidence would add context.
Use the 100-person labor force.
Divide index change by 120.
Keep classifications and household experience separate.
Response criteria
- Explain the relevant institution or economic concept accurately; show correct calculations where needed.
- Connect supplied evidence and stated assumptions to an explained conclusion.
- Compare feasible options and their effects on different people without stereotypes.
- Identify a limitation, tradeoff, uncertainty, or condition that qualifies the conclusion.
Problem 2
Answer and explanation
The original rate is 20/200, ten percent; the later rate is 10/190, about 5.26 percent. Employment remains 180. A falling unemployment rate alone therefore cannot establish new jobs; participation also changed.
Response criteria
- Explain the relevant institution or economic concept accurately; show correct calculations where needed.
- Connect supplied evidence and stated assumptions to an explained conclusion.
- Compare feasible options and their effects on different people without stereotypes.
- Identify a limitation, tradeoff, uncertainty, or condition that qualifies the conclusion.