How to Calculate the Labor Force Participation Rate
The labor force participation rate equals the labor force divided by the working-age population, times 100.
Formula
LFPR = (Labor force ÷ working-age population) × 100 | Labor force = employed + unemployed
Steps
- 1Find the labor force. Employed plus unemployed (jobless but actively looking). Exclude anyone neither working nor seeking work — discouraged workers, retirees, and students who aren't employed or job-hunting.
- 2Find the working-age population. The civilian, non-institutionalized population age 16 and over.
- 3Divide and convert to a percent. LFPR = (labor force ÷ working-age population) × 100.
Worked example
If the labor force is 160 million and the working-age population is 250 million, LFPR = (160 ÷ 250) × 100 = 64%.
Frequently asked questions
How is LFPR different from the unemployment rate?
The unemployment rate divides the unemployed by the labor force; LFPR divides the labor force by the whole working-age population. They answer different questions and can move independently.
What happens to LFPR when workers get discouraged?
Discouraged workers leave the labor force, so LFPR falls — and the unemployment rate can fall too, even though no one found a job.
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