Economics » Unemployment » How the Unemployment Rate is Defined and Computed

Labor Force Participation Rate

Labor Force Participation Rate

Another important statistic is the labor force participation rate. This is the percentage of adults in an economy who are either employed or who are unemployed and looking for a job. So, using the data in this figure and this table, those included in this calculation would be the 157 million individuals in the labor force. The rate is calculated by taking the number of people in the labor force, that is, the number employed and the number unemployed, divided by the total adult population and multiplying by 100 to get the percentage.

For the data from February 2015, the labor force participation rate is 62.8%. Historically, the civilian labor force participation rate in the United States climbed beginning in the 1960s as women increasingly entered the workforce, and it peaked at around 68% in late 1999 to early 2000. Since then, the labor force participation rate has steadily declined.

[Attributions and Licenses]

This is a lesson from the tutorial, Unemployment and you are encouraged to log in or register, so that you can track your progress.

Log In

Share Thoughts