Friday, December 13, 2013

How to calculate Labor Force Participation Rate had a good answer:
The Labor Force Participation rate is the percentage of people who are 16 and older who are employed or looking for employment. The LFP rate formula: Take the number of people employed and looking and divide it by the entire population that are not in institutions (school, prison or military.) Multiply this number by 100 to get the percentage of people participating in the labor force.

And this note:
The Labor Force Participation Rate = Civilian Labor Force / Total non-institutionalized civilian population.

I went right to FRED, found Civilian Labor Force (CLF16OV) and Civilian Noninstitutional Population (CNP16OV), took the ratio, multiplied by 100, and put Civilian Labor Force Participation Rate (CIVPART) on the same graph. Good match:

Graph #1: The Calculation that gives the Civilian Labor Force Participation Rate


Greg said...

So, as I read it, if we simply throw more folks in jail we can raise our participation rate!

Now I understand those neoliberal geniuses and their prison policies which ask states to guarantee a 90% occupation level in the privatized prisons, they are only doing it for the good of the economy! They want a higher participation rate!

I guess I need to stop impugning their motives

The Arthurian said...

Oh wow, it all makes sense now!!!

Jazzbumpa said...

As if I weren't depressed enough already . . .