The Labor Force is the total number of people 16 years old or older who are non-institutionalized are are not active members of the armed forces.

The Labor Force Participation Rate (LFPR) is the percentage of the Labor Force who is actually employed or seeking employment.

The factors that change the LFPR are the number of retirees, the number of students not seeking for jobs, and the number of people on disability. Also when people becomes wealthier they neither work nor seek for jobs. Societal changes such as the inclusion of women in the workforce has increased the LFPR in the 20th century. Situations such as recessions or, more recently, the COVID-19 pandemic, cause people to get discouraged to look for work.

The latest LFPR in the United States of America, in June 2021, is 61.6%, as seen in this article. Prior to the pandemic it was above 63% and was recovering.

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.

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