Participation Rate

A measure of the active portion of an economy's labor force. The participation rate refers to the number of people who are either employed or are actively looking for work. The number of people who are no longer actively searching for work would not be included in the participation rate. During an economic recession, many workers often get discouraged and stop looking for employment, as a result, the participation rate decreases.

The participation rate is an important metric to note when looking at unemployment data because unemployment figures reflect the number of people who are looking for jobs but are unable to secure employment.

The participation rate is important in analyzing the unemployment rate. Those who have no interest in working are not included in the participation rate but are included in the unemployment rate. An aging population can have both a positive and negative effect on the participation rate, through retirement and new people entering the workforce. The participation rate and unemployment data should be observed in tandem to give a better understanding of the overall employment status.


Investment dictionary. . 2012.

Look at other dictionaries:

  • participation rate — See labour force participation rate …   Dictionary of sociology

  • labour force participation rate — darbo jėgos aktyvumo lygis statusas Aprobuotas sritis darbo ir užimtumo statistika apibrėžtis Rodiklis, išreiškiamas darbo jėgos ir visų gyventojų santykiu. atitikmenys: angl. labour force activity rate; labour force participation rate; labour… …   Lithuanian dictionary (lietuvių žodynas)

  • labour-force participation rate — This refers to the number of people in work and unemployment and those seeking work, as a proportion of a specified baseline population. Rates may vary according to how the base group is defined, for example male, female, the total adult… …   Dictionary of sociology

  • participation — noun ADJECTIVE ▪ full ▪ broader, greater, increased ▪ mass, widespread ▪ We have to improve and increase mass participation in sports …   Collocations dictionary

  • participation — Provision in insurance policies by which the insured shares or participates in each loss incurred and covered by the policy on a specified percentage basis. Sometimes loosely referred to as coinsurance but latter term is not strictly applicable.… …   Black's law dictionary

  • Participation Mortgage — A participation mortgage is a type of mortgage that allows the lender to share in part of the income or resale proceeds. The lender participates in the income of the mortgaged property beyond a fixed return, or receives a yield on the loan in… …   Investment dictionary

  • Total fertility rate — Not to be confused with birth rate. A world map showing countries by fertility rate, 2005 2010 …   Wikipedia

  • Equity Participation — Ownership of shares in a company or property. Equity participation may involve the purchase of shares through options or by allowing partial ownership in exchange for financing. The greater the equity participation rate, the higher the percentage …   Investment dictionary

  • labour force activity rate — darbo jėgos aktyvumo lygis statusas Aprobuotas sritis darbo ir užimtumo statistika apibrėžtis Rodiklis, išreiškiamas darbo jėgos ir visų gyventojų santykiu. atitikmenys: angl. labour force activity rate; labour force participation rate; labour… …   Lithuanian dictionary (lietuvių žodynas)

  • Online participation — Several motivations lead people to contribute to virtual communities. Various online media (i.e. Blogs, Chat rooms, Electronic mailing lists, Internet forums, Wikis), are becoming ever greater knowledge sharing resources. Many of these… …   Wikipedia

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