Enter the total number of employed workers, number of unemployed workers, and the working-age non-institutionalized population.

Labor Force Participation Rate Formula

The following formula can be used to calculate the labor force participation rate of a given country or area. 

LFPR = LF / P *100
  • Where the LFPR is the labor force participation rate
  • LF is the total labor force = total employed + unemployed
  • P is the working-age able population

To calculate the labor force participation rate, divide the total labor force by the work-age able population, then multiply by 100.

Labor Force Participation Rate Definition

The labor force participation rate, or LFPR for short, is a measure of the percentage of a given population is participating in labor. In other words, it’s another way of saying the employed percentage of the working-age “able” population including those looking for work.

This can be applied to a country or a smaller area. The working population should only include individuals that are capable of work.

Labor Force Participation Rate Example

How to calculate a labor force participation rate?

  1. First, determine the labor force.

    Calculate the total number of people in the labor force.

  2. Next, determine the working age population.

    Calculate the total number of people of working age.

  3. Finally, calculate the participation rate.

    Calculate the labor force participation rate using the formula above.

FAQ

What is a labor force participation rate?

The labor force participation rate is the percentage of people in a working population that are either employed or seeking employment.