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Labour Force Participation Rate Calculation

Labour Force Participation Rate Formula:

\[ LFPR = \frac{Employed + Unemployed}{Population} \times 100 \]

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people
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1. What is Labour Force Participation Rate?

The Labour Force Participation Rate (LFPR) is a measure of the active workforce in an economy. It represents the percentage of the working-age population (typically ages 16-64) that is either employed or actively seeking employment.

2. How Does the Calculator Work?

The calculator uses the LFPR formula:

\[ LFPR = \frac{Employed + Unemployed}{Population} \times 100 \]

Where:

Explanation: The formula calculates what percentage of the working-age population is either working or actively looking for work.

3. Importance of LFPR

Details: LFPR is a key economic indicator that helps understand the proportion of people contributing to the labor market. A declining LFPR may indicate discouraged workers or demographic changes.

4. Using the Calculator

Tips: Enter the number of employed and unemployed individuals along with the total working-age population. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good LFPR?
A: There's no "ideal" rate as it varies by country and demographics, but typically ranges between 60-70% in developed nations.

Q2: How does LFPR differ from unemployment rate?
A: Unemployment rate only considers people actively seeking work, while LFPR includes both employed and unemployed relative to total population.

Q3: Why might LFPR decrease?
A: Reasons include retirement, increased education participation, or discouraged workers leaving the labor force.

Q4: How often is LFPR measured?
A: Most countries measure it monthly as part of their labor force surveys.

Q5: Does LFPR include all age groups?
A: Typically focuses on working-age population (usually 16-64), but exact ranges vary by country.

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