Final answer:
The labor-force participation rate indicates the percentage of the adult population that is active in the labor market, either through employment or active job-seeking. It is calculated by dividing the number of people in the labor force by the total adult population and multiplying by 100. This rate provides insight into the workforce dynamics of an economy.
Step-by-step explanation:
The labor-force participation rate indicates the percentage of adults in an economy who are either employed or who are unemployed and actively seeking a job. This is an important economic statistic that measures the active portion of an economy's labor force.
To calculate the labor force participation rate, you take the number of people in the labor force (both employed and the unemployed looking for work) and divide it by the total adult population. Then, you multiply that number by 100 to get the percentage. For instance, if the total adult population is 200 million and the number of people in the labor force is 130 million, the labor force participation rate would be (130/200) x 100%, which equals 65%.
Historically, in the United States, the rate has fluctuated due to various economic changes and demographic shifts, such as the growing number of women entering the workforce since the 1960s and its subsequent peak in the late 1990s to early 2000s, and then a decline during and after the Great Recession and most recently due to the impact of the COVID-19 pandemic.