Labor force contribution rate is the proportion of working age population that is portion of the labor force. It is an amount of what amount of a country's population is working or actively looking for occupation. Advanced the labor force participation rate, more of the country's population is concerned in working. The employed are someone aged 16 years old and above in the civilian non-institutional population who worked in the last week. That means they worked an hour or more as paid employees or 15 hours or more as unpaid workers in a family-owned business or farm. It also comprises those who had jobs or businesses but did not work that week since they were on vacation, sick, on maternity or paternity leave, on strike, in training, had some other family or personal reasons they did not work while the unemployed are those age 16 or more who were not employed but were accessible for work and keenly looked for a job within the past four weeks.
The formula for the labor force participation rate is:
Labor force participation rate = labor force / working age non-institutionalized population
Subsequently labor force is the totality of employed and unemployed,
Labor force participation rate = Employed + unemployed / working age non-institutionalized population
