Labor Force Participation Rate (LFPR)

At A Glance#

Field	Detail
Provider	U.S. Bureau of Labor Statistics (BLS)
Survey / Tool	Current Population Survey (CPS) — also called the Household Survey
Frequency	Monthly
Indicator Type	Coincident
Main Use	Measures the share of the working-age population engaged with the labor market (working or looking for work)
Live Series	Trading Economics — Labor Force Participation Rate

What It Is#

The Labor Force Participation Rate (LFPR) is the percentage of the working-age population that is either currently employed or actively looking for work. A person who is retired, in school, sick, or has given up looking for a job is not in the labor force, and therefore not counted in LFPR.

This makes LFPR a measure of how engaged the population is with the labor market — a complement to the Unemployment Rate, which only counts active job-seekers within an already-defined labor force.

Who Provides It#

BLS publishes LFPR using the Current Population Survey (CPS) — also known as the Household Survey — which is conducted by the Census Bureau for BLS.

How It Is Collected#

• The CPS sample consists of approximately 60,000 scientifically selected households.
• Interviewers ask standard questions about each household member's work and job-search activities during the reference week — usually the week including the 12th day of the month.
• Unlike the establishment-side CES used for Nonfarm Payrolls (NFP), the CPS captures self-employed workers, unpaid family workers, and private household workers — so it covers a different population.

How It Is Computed#

$$\text{LFPR} = \frac{\text{Labor Force}}{\text{Civilian Noninstitutional Population}} \times 100$$

Where:

• Labor Force = Employed + Unemployed
• Civilian Noninstitutional Population = people aged 16 and above who are not in institutions (prisons, hospitals, nursing homes) and not on active duty in the armed forces

Indicator Type#

Coincident. LFPR shows the current willingness and ability of the working-age population to participate in the economy. Both the labor force size and the civilian noninstitutional population can be calculated for the survey reference week, so the metric reflects conditions during that month rather than projecting into the future or confirming a past trend.

Why It Matters#

A rising LFPR can mean more people are entering or returning to the labor market — usually a sign of confidence in job prospects. A falling LFPR can signal retirement waves, schooling, illness, discouragement, or other reasons people are stepping away from active work or job search.

LFPR is essential context for reading the Unemployment Rate. People outside the labor force are not counted as unemployed, so the unemployment rate can fall purely because discouraged workers stop looking — not because the economy is actually creating jobs.

Related Notes#

• Unemployment Rate — uses the same CPS Household Survey; LFPR provides the denominator
• Nonfarm Payrolls (NFP) — measures jobs from the employer side (CES); LFPR measures participation from the household side
• JOLTS — Job Openings and Labor Turnover Survey — labor demand counterpart

Sources#

• BLS CPS Data
• BLS CPS Concepts