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Labor force participation rate calculator

Measure the share of the working-age population in the labour force.

Calculator

The population above the age at which people are counted as available for work, often 15 or 16 and over.

Labour force participation rate
76.923077%
Unemployment rate
5.000000%
Labour force (thousands)
20,000.00

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How this calculator works

The labour force participation rate divides the labour force, the sum of employed and unemployed people, by the working-age population. People who are not looking for work, such as full-time students, retirees and some caregivers, are outside the labour force and lower the rate without counting as unemployed. The unemployment rate separately divides unemployed people by the labour force. Reading the two together matters: a participation rate falling at the same time as unemployment falls can mean people gave up looking rather than found work. Definitions of working age and of active job search differ between statistical agencies.

Formula

Participation rate = labour force / working-age population. Labour force = employed + unemployed, and the unemployment rate = unemployed / labour force. To recover the labour force from a participation rate, multiply the rate by the working-age population; unemployed people are then the unemployment rate times that labour force, and employed people are the remainder.

Worked example

With 19,000 thousand employed, 1,000 thousand unemployed and a working-age population of 26,000 thousand, the labour force is 20,000 thousand, participation is 76.9231% and unemployment is 5%. Starting from a 65% participation rate with a 5% unemployment rate gives a labour force of 16,900 thousand, 845 thousand unemployed and 16,055 thousand employed.

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Frequently asked questions

Who counts as unemployed?

A person must be without work, available to start work and actively looking for work during the survey period. Someone who wants a job but has stopped searching is counted as outside the labour force, not unemployed.

Can participation exceed 100%?

Not with consistent definitions. The labour force is a subset of the working-age population, so the rate is at most 100%. A figure above 100% usually means the population and labour force use different age boundaries.

Why does participation matter for the unemployment rate?

The unemployment rate ignores people outside the labour force. If discouraged workers stop searching, unemployment can fall even though the jobs picture has not improved, which is why participation is reported alongside it.

Sources

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