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.
The Labor Force Participation formula
Calculator
Enter the labor force and the working-age population to get the participation rate and who sits outside it.
Employed plus unemployed (jobless but actively looking for work).
The civilian, non-institutionalized population age 16 and over.
About 64 of every 100 working-age people are employed or actively looking for work.
- Not in the labor force
- 90 million
- Share not in the labor force
- 36%
Neither working nor actively job-hunting: retirees, full-time students, discouraged workers.
How to calculate Labor Force Participation, step by step
- 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: Labor Force Participation
If the labor force is 160 million and the working-age population is 250 million, LFPR = (160 ÷ 250) × 100 = 64%.
Labor Force Participation 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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