Labor Market

Labor Force Participation Rate

The labor force participation rate is everyone working or actively looking, divided by the civilian population aged 16+. It is the denominator behind the unemployment rate, which is why the two can move in misleading ways: unemployment falls when discouraged workers stop looking, because leaving the labor force removes them from the count entirely. Participation peaked near 67% in 2000 and has trended down with demographics, so read changes against that trend rather than against the level.