Definition of the "Participation Rate" in employment (click here for video)
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.
Breaking Down the Participation Rate
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....
The focus is ill conceived. To the left is the current 'trend' in employment participation. The sad aspect of this graph is the "Baby Boomer" generation is falling out of the work force. The Baby Boomers would have entered the work force starting in 1965.
When looking at the history of the employment participation rate, it is best to realize the AGES of the citizens not participating in 2015. The 2008 Global Economic Collapse occurred as the Baby Boomers were coming into retirement age.
The economic collapse helped to stimulate retirement as the 60 somethings when they faced loss of their jobs. There is going to be a higher participation rate in 2015 than 1965 because of the new generations. But, it should not be completely alarming there is a lower participation rate after 2008 because the Boomers are retiring. The youngest of this generation will be 50 years old this year.
The idea there are employable citizens currently that have given up is going to be accurate, but, not to the extent a political right wing wants to claim it to be so.
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.
Breaking Down the Participation Rate
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....
The focus is ill conceived. To the left is the current 'trend' in employment participation. The sad aspect of this graph is the "Baby Boomer" generation is falling out of the work force. The Baby Boomers would have entered the work force starting in 1965.When looking at the history of the employment participation rate, it is best to realize the AGES of the citizens not participating in 2015. The 2008 Global Economic Collapse occurred as the Baby Boomers were coming into retirement age.
The economic collapse helped to stimulate retirement as the 60 somethings when they faced loss of their jobs. There is going to be a higher participation rate in 2015 than 1965 because of the new generations. But, it should not be completely alarming there is a lower participation rate after 2008 because the Boomers are retiring. The youngest of this generation will be 50 years old this year.
The idea there are employable citizens currently that have given up is going to be accurate, but, not to the extent a political right wing wants to claim it to be so.
