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Labor force participation rate

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

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Labor Force Participation Rate

The labor force participation rate is a measure of the proportion of the population that is either employed or actively looking for work. It is calculated by dividing the number of people in the labor force by the total population. The labor force participation rate is an important indicator of the health of an economy, as it reflects the level of economic activity and the availability of jobs. It is also used to measure the level of labor market slack, which is the amount of available labor that is not being utilized.

History of the Term

The concept of labor force participation rate has been around since the early 20th century. It was first used by the U.S. Bureau of Labor Statistics in the 1920s to measure the level of economic activity in the country. Since then, it has become an important economic indicator used by governments and economists to measure the health of an economy. The labor force participation rate is also used to measure the level of labor market slack, which is the amount of available labor that is not being utilized.

Comparisons

Country Labor Force Participation Rate (%)
United States 63.4
Japan 59.2
Germany 76.3
United Kingdom 75.7
France 63.2

Summary

The labor force participation rate is an important indicator of the health of an economy, as it reflects the level of economic activity and the availability of jobs. It is also used to measure the level of labor market slack, which is the amount of available labor that is not being utilized. For more information about the labor force participation rate, you can visit the websites of the U.S. Bureau of Labor Statistics, the International Labour Organization, and the Organisation for Economic Co-operation and Development.

See Also

  • Unemployment Rate
  • Employment-to-Population Ratio
  • Underemployment Rate
  • Labor Force
  • Gross Domestic Product
  • Productivity
  • Wage Growth
  • Job Openings
  • Jobless Claims
  • Job Creation

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