Labour Force Participation Rate (LFPR)

The Labour Force Participation Rate measures the proportion of the working-age population—typically individuals aged 16 to 64 years—who are either employed or actively seeking employment. It reflects the extent of active engagement of people in the labour market and serves as a key indicator of the economy’s ability to create and sustain jobs.

Individuals who are not seeking work, such as those engaged in full-time education, homemakers, retirees, or those unable to work, are excluded from the labour force and therefore not counted in the calculation.

Example: If a country has 80 million working-age people, and 48 million are either employed or seeking employment, LFPR=(48/80)×100=60%