The formula to calculate the labor force participation rate (LFPR) is:
\[ LFPR = \frac{LF}{P} \times 100 \]
Where:
The labor force participation rate, or LFPR for short, is a measure of the percentage of a given population that is participating in labor. In other words, it’s another way of saying the employed percentage of the working-age “able” population, including those looking for work. This can be applied to a country or a smaller area. The working population should only include individuals that are capable of work.
Let's assume the following values:
Using the formula to calculate the labor force participation rate:
\[ LFPR = \frac{150,000}{200,000} \times 100 = 75\% \]
The Labor Force Participation Rate (LFPR) is 75%.
