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Labor Force Participation Rate

The labor force participation rate is a measure of the percentage of the civilian population aged 16 years or older who are either employed or actively seeking employment. It is calculated by dividing the total labor force (employed plus unemployed individuals who are actively seeking work) by the total population in the same age range, and then multiplying by 100.

The labor force participation rate is an important indicator of the health of the labor market and the overall economy. A high labor force participation rate suggests that a larger percentage of the population is engaged in the labor market and is likely to be earning income, which can contribute to economic growth. Conversely, a low labor force participation rate may indicate that many individuals have become discouraged and have stopped looking for work, which can negatively impact the economy.

The labor force participation rate is typically reported by government agencies such as the Bureau of Labor Statistics (BLS) in the United States. The BLS publishes monthly reports on employment and labor force statistics, including the labor force participation rate. The labor force participation rate can also be found in a variety of other economic reports and publications, such as those from the Federal Reserve, World Bank, and International Monetary Fund, among others. Additionally, financial news outlets and research organizations often report on and analyze the labor force participation rate and other labor market data.

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