Labor Force Participation Rates

What is it and why does it matter?

The labor force participation rate is the percentage of people in the labor force divided by the working-age population. (The labor force is defined as people employed plus people who are unemployed, but looking for work). This chart shows five measures of the labor force participation rate: overall (age 16+), prime working-age (age 25-54), males (age 20-64), females (age 20-64), and for people with any disability (age 20-64). Labor force participation measures how engaged the working-age population is in pursuing job opportunities. Southeast Michigan's rates for the prime-age population and people with disabilities are especially important, as the region has lagged most major metropolitan areas.

Latest Southeast Michigan trend:

While the overall labor force particpation rate for the region declined by 0.1 percentage points in 2023, participation for the prime-working age population (and its subsets) grew. Female participation increased by 1.1 percentage points, while male participation grew by 0.6 percentage points. People with a disability increased their participation by 0.2 percentage points. Participation also increased for the prime-age population (age 25-54), which grew by 1.2 percentage points. Since 2019, growth in the overall labor force participation rate has waned, reflecting our aging workforce. Still, the participation rates for the prime-age population (and its subsets of female, male, and those with a disability) have increased in the last four years, demonstrating that more people are becoming engaged in the workforce. Our region needs to continue to find ways to increase the labor force participation rate for the prime-age population to around 85 percent, which is the median of our peer regions in the Midwest.