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Create your resume What to include in the labor force participation rate There are three elements to consider when calculating the labor force participation rate: people currently working, those actively seeking employment and the total population.

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People currently working means anyone who is currently employed, including part-time positions. People who have been looking for a job for four or more weeks are considered to be actively looking for employment and are regarded as participants in the labor force. The total population refers to the number of people in a particular geography. How to calculate the labor force participation rate You can determine the labor force participation rate by following these steps: 1.

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Gather labor force data The labor force is comprised of working-age adults, those 16 or older, who are either employed or have been actively seeking employment for at least four weeks. Example: To know what the labor force participation rate was for the yearfirst, you must determine the the participation ratio in options is of people in the labor force. The Bureau of Labor Statistics found that the labor force for the United States in wasGather population data The population does not include working-age people who are institutionalized, but it does include everyone else between the ages of 16 and Example: According to the Bureau of Labor Statistics, the population of non-institutionalized working-age people in the United States in wasCalculate the labor force participation rate To calculate the labor force participation rate, divide the labor force by the population.

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Convert that decimal into a percentage to see the labor force participation rate. Example: The labor force participation rate in the United States in was Related: Decision-Making Methods for the Workplace What can affect the labor force participation rate?

The labor force participation rate can be affected by many external factors.

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Employers have very little control over these elements: Recession Recession—or a period of economic decline—can impact the labor force participation rate. Economic decrease leads to less money in the overall economy, which leads to businesses laying workers off or pausing hiring.

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The recession of led to a drop in the labor force participation rate. Outsourcing Outsourcing—or contracting external workers—usually from overseas, leads to fewer available jobs in the United States. This has a large impact when a mega-corporation begins outsourcing.

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Long-term unemployed After extended unemployment, job seekers may stop looking for work altogether. Once a person stops actively looking for work, they can no longer be counted towards the labor force participation rate.

This happens most often following a recession.

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Natural disasters Hurricanes, earthquakes or other large-scale natural disasters can impact the labor force participation rate. This generally applies on a micro-scale course on creating trading robots state or city rather than a national scale.

The Declining Labor Force Participation Rate: Causes, Consequences, and the Path Forward

For example, it took months for many businesses to recover from the devastation caused by Hurricane Katrina in New Orleans.

Cultural shifts Occasionally, there is a massive shift in societal roles.

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The best example of this is World War II. Women joined the workforce in large numbers to replace men who joined the armed forces and left their positions.

How to Calculate the Labor Force Participation Rate

This led to an enormous uptick in the labor force participation rate. Labor force Some labor force factors affect the labor force participation rate. The participation ratio in options is usually applies on a smaller scale, such as a state or city.

A financial institution whose main activity is providing pension products. All qualifying investments held in the plan were free of income and capital gains tax but there was a limit on the amount that could be invested each year.

Labor force factors include: Population: Generally, a higher population leads to a higher labor force participation rate. The more people there are, the more goods and services are required. This leads to more job opportunities.

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Income: The higher a state's average income, the more attractive it is to job seekers. Workers are often willing to move for better job opportunities. Education: Societies with a highly-educated populace have a higher labor force participation rate.

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Homeownership: Populations with high homeownership have a lower labor force participation rate. Homeowners are less mobile and less likely to move for a job.

Age: Retirement can reduce the labor force participation rate. Currently, the labor force participation rate is dropping as baby boomers retire. Related Articles.