How to calculate labor force participation rate

General
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how to calculate labor force participation rate

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How to calculate labor force participation rate?

Answer:

The labor force participation rate is calculated as the percentage of the working-age population (generally defined as individuals aged 16 and older) who are either employed or actively seeking employment. To calculate the labor force participation rate,

you need to follow these steps:

  1. Determine the total number of people who are in the working-age population.

  2. Calculate the number of people who are employed or actively seeking employment.

  3. Divide the number of people who are employed or actively seeking employment by the total number of people in the working-age population.

  4. Multiply the result by 100 to get the percentage.

The formula for calculating the labor force participation rate is:

Labor force participation rate = (number of employed + number of unemployed) / working-age population x 100

For example, if the number of employed and unemployed people in the working-age population is 150 million and the total working-age population is 200 million, the labor force participation rate would be:

(150 million / 200 million) x 100 = 75%