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The Labor Force Participation Rate (LFPR) from the American Community Survey (ACS) represents the percentage of the civilian population aged 16 and older that is either employed or actively seeking employment during the survey period. It excludes active-duty military personnel and institutionalized individuals. LFPR is a critical measure of workforce engagement and is influenced by factors such as demographics, education, health, and economic conditions.
Why does this matter?
- Low Labor Force Participation Negatively Impacts Community Health
- LFPR decline affects household income, tax revenues, and economic mobility in cities.1
- Low Labor Force Participation Contributes to Addiction
- Increase opioid use, disability claims, and diminished community well-being.2
- Impacts Income and Economic Equity
- A recent book underscores the role of childcare availability, wage gaps, and family policies in shaping LFPR for women, showing implications for household income and economic equity.3
1 CEA (2016). The Long-Term Decline in Prime-Age Male Labor Force Participation.
https://obamawhitehouse.archives.gov/sites/default/files/page/files/20160620_cea_primeage_male_lfp.pdf
2 Krueger, A. B. (2017). Where Have All the Workers Gone? Brookings Papers on Economic Activity, Fall 2017.
https://www.brookings.edu/bpea-articles/where-have-all-the-workers-gone/
3 Goldin, C. (2021). Understanding the Gender Gap: An Economic History of American Women. Harvard University Press.