Participation Rate

The participation rate is the percentage of people who are working or actively looking for work out of all those who are able to work, ages 16 and older. It shows how many people in the labor force are engaging in employment-related activities. A higher participation rate indicates a larger proportion of the population is working or seeking work, while a lower rate suggests fewer people are participating, which can reflect economic conditions or demographic shifts. It helps economists understand the labor market’s health and how many potential workers are actively involved in the economy.