Labor force participation refers to the percentage of the working-age population that is either employed or actively looking for work. It provides insights into how effectively a country or region is utilizing its workforce. The labor force includes all individuals aged 16 and older (in the U.S.) who are either working or seeking employment, while those not included may be retired, studying, or otherwise not actively participating in the job market.
A higher labor force participation rate can indicate a healthy economy with more people engaged in productive activities, whereas a lower rate may suggest economic challenges or a lack of job opportunities. It's a key indicator used by economists and policymakers to assess workforce dynamics and labor market health.