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AP MacroeconomicsUnemployment & Inflation

Labor Force Participation Rate

The labor force participation rate is the percentage of the civilian non-institutional population that is in the labor force.

The labor force participation rate measures the proportion of the working-age population that is either employed or actively looking for work. It is calculated by dividing the labor force by the civilian non-institutional population and multiplying by 100. This rate can change due to factors like demographics, economic conditions, and social trends.

Formula / Example

Labor Force Participation Rate = (Labor Force ÷ Civilian Non-Institutional Population) × 100
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Unemployment & Inflation →
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Related terms

Cost-Push InflationCyclical UnemploymentDeflationDemand-Pull InflationDiscouraged WorkersDisinflation
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