Labor force participation rate

The labor force participation rate is the percentage of the civilian, non-institutionalized population aged 16 and older that is either employed or actively seeking a job. The Bureau of Labor Statistics measures it each month through the Current Population Survey. People not working and not looking, such as retirees, students, caregivers and discouraged workers, are outside the labor force.

The rate rose through the late twentieth century as more women entered the workforce, reaching a peak around 67 percent in 2000, and has since fallen, to the low 60s, mainly as the population has aged and baby boomers retired. Participation among men aged 25 to 54, the "prime-age" group, has declined over decades, and it fell sharply during the pandemic before partly recovering.

Economists and politicians watch it because the unemployment rate counts only those looking for work, so a falling participation rate can lower unemployment without more people having jobs. Conservatives often point to low participation to argue that disability and welfare programs or other policies discourage work, while others emphasize aging, health, child care costs and education. Comparisons with other countries show differences, especially for women. The measure helps interpret headline jobs data and long-run gross domestic product growth.