Short Answer
The U.S. labor force participation rate is one of the most closely watched measures of labor market health. In July 2026, it stood at 61.4%, down 0.8 percentage points from a year earlier, according to the Bureau of Labor Statistics. The decline reflects both long-running demographic forces and a notable mid-2026 drop among prime-age workers, making the rate a key indicator to watch.
Key Numbers
- July 2026 labor force participation rate: 61.4%
- Year-over-year change: -0.8 percentage points
- June 2026 rate: 61.6%
- April 2020 pandemic low: 60.1%
- July 2019 pre-pandemic rate: 63.1%
- Age group measured: 16 years and over
- Prime-age group: 25 to 54 years
- State data period: January 1976 to June 2026
Explanation
The labor force participation rate measures the percent of people ages 16 and older who are engaged in the labor market, including those who are working or who are unemployed but actively looking for a job. It is calculated by dividing the civilian labor force by the civilian noninstitutional population and multiplying by 100.
A rising participation rate means a growing share of the working-age population is employed or looking for work; a falling rate means a shrinking share is doing so. The rate is a frequently referred to economic indicator because fast labor force growth is tied to faster GDP growth, according to the Bureau of Labor Statistics.
In 2026, the rate has fallen sharply. More than half of the decline came from a statistical correction to the population level in January and from the steady effects of an aging population, not from workers exiting the labor market. However, part of the decline is due to a sharp June drop in participation among workers ages 25 to 54.
Definition
The labor force participation rate is the share of the civilian noninstitutional population age 16 and older that is either employed or unemployed and actively seeking work. It includes people who are working part-time or full-time, as well as those who are jobless but have looked for work in the past four weeks. It excludes people who are retired, in school, caring for family members, or not looking for work for other reasons.
How the Statistic Is Calculated
The rate is calculated using data from the Bureau of Labor Statistics’ Current Population Survey. The formula is:
Labor force participation rate = (Civilian labor force ÷ Civilian noninstitutional population age 16 and over) × 100
The civilian labor force is the sum of employed and unemployed people. The civilian noninstitutional population excludes people in the military, prison, mental health facilities, and other institutions. The rate is reported both seasonally adjusted and not seasonally adjusted.
Historical Data
The table below shows the seasonally adjusted U.S. labor force participation rate for July in selected years, based on Bureau of Labor Statistics data.
| Year | July LFPR (%) |
|---|---|
| 2016 | 62.8 |
| 2017 | 62.9 |
| 2018 | 63.0 |
| 2019 | 63.1 |
| 2020 | 61.5 |
| 2021 | 61.8 |
| 2025 | 62.2 |
| 2026 | 61.4 |
The 2025 value is derived from the reported 0.8 percentage point year-over-year decline. The April 2020 rate of 60.1% was the lowest monthly reading during the COVID-19 pandemic.
Year-over-Year Change
Between July 2025 and July 2026, the U.S. labor force participation rate fell by 0.8 percentage points, from 62.2% to 61.4%. The June 2026 rate was 61.6%, and the decline in 2026 has been sharp enough to draw attention from economists. Excluding the 2020–21 pandemic period, the June 2026 level is still within the range seen in recent years, but the trend bears watching.
State Comparison
State-level labor force participation rates are published by the Federal Reserve Bank of St. Louis through its FRED database. The release includes both seasonally adjusted and not seasonally adjusted series for all states, with data beginning in January 1976. The table below lists selected states highlighted in the FRED release and the periods available.
| State | Seasonally adjusted | Not seasonally adjusted | Period available |
|---|---|---|---|
| Alabama | Yes | Yes | Jan 1976–Jun 2026 |
| Louisiana | Yes | Yes | Jan 1976–Jun 2026 |
| Georgia | Yes | Yes | Jan 1976–Jun 2026 |
| Mississippi | Yes | Yes | Jan 1976–Jun 2026 |
| California | Yes | Yes | Jan 1976–Jun 2026 |
| Minnesota | Yes | Yes | Jan 1976–Jun 2026 |
| Texas | Yes | Yes | Jan 1976–Jun 2026 |
| Michigan | Yes | Yes | Jan 1976–Jun 2026 |
State rates vary because of differences in age structure, industry mix, educational attainment, and other local factors. Users can retrieve the latest state values directly from FRED.
Why It Matters
The labor force participation rate is a broad measure of labor supply. A rising rate indicates that more people are available to produce goods and services, which supports economic growth. A falling rate can signal that people are leaving the labor market, which may slow GDP growth. The Bureau of Labor Statistics notes that fast labor force growth is tied to faster GDP growth, while slower labor force growth is tied to slower GDP growth.
The rate also helps policymakers and analysts understand how demographic changes, such as the aging of the population, affect the economy. It is often used alongside the unemployment rate to get a fuller picture of labor market conditions.
Factors Behind the Trend
According to a St. Louis Fed analysis published in August 2026, more than half of the 2026 decline in the U.S. labor force participation rate came from a statistical correction to the population level in January and from the steady effects of an aging population. These factors are not the same as workers giving up on the job market.
More than half of the decline came from a statistical correction to the population level in January and from the steady effects of an aging population, not from workers exiting the labor market.
However, part of the decline is due to a sharp June drop in the participation rate among workers ages 25 to 54. While dramatic, the June drop brings the prime-age participation rate back to a level consistent with recent years. Economists say this rate merits careful watching in coming months; a continued decline may signal a deeper change in the behavior of workers in this critical age group.
Limitations of the Data
The labor force participation rate has several limitations. It can move because of population changes or statistical corrections, not just because of changes in people’s willingness to work. The aging of the population mechanically lowers the rate as more people move into retirement age. The rate also does not capture discouraged workers—people who want a job but have stopped looking—because they are not counted as part of the labor force. Additionally, the rate does not measure the quality of jobs, hours worked, or underemployment.
Methodology
The Bureau of Labor Statistics produces the national labor force participation rate from the Current Population Survey, a monthly survey of about 60,000 households. The rate is seasonally adjusted to remove predictable seasonal patterns. The civilian noninstitutional population includes people age 16 and older who are not in the military or an institution. The labor force includes people who are employed or unemployed and actively looking for work.
Timeline
- April 2020: The rate falls to 60.1% during the COVID-19 pandemic.
- July 2019: The pre-pandemic rate is 63.1%.
- January 2026: A statistical correction to the population level contributes to the 2026 decline.
- June 2026: The rate falls to 61.6%, with a sharp drop among prime-age workers.
- July 2026: The rate stands at 61.4%, down 0.8 percentage points from July 2025.
Source & Data Date
The primary source for the national labor force participation rate is the Bureau of Labor Statistics, Current Population Survey, series LNS11300000. The July 2026 rate of 61.4% was reported by USAFacts and is based on BLS data. The June 2026 rate and analysis of the 2026 decline come from the Federal Reserve Bank of St. Louis, published August 4, 2026. State-level data are available from the Federal Reserve Bank of St. Louis FRED database, with data through June 2026.
FAQ
What is the labor force participation rate?
The labor force participation rate is the percentage of the civilian noninstitutional population age 16 and older that is either employed or unemployed and actively looking for work. It measures how many working-age people are engaged in the labor market.
How is the labor force participation rate different from the unemployment rate?
The unemployment rate measures the share of the labor force that is jobless and looking for work. The labor force participation rate measures the share of the entire working-age population that is in the labor force at all, whether employed or unemployed. A person who stops looking for work leaves the labor force and is no longer counted in either the unemployment rate or the participation rate.
Why did the U.S. labor force participation rate drop in 2026?
According to the Federal Reserve Bank of St. Louis, more than half of the 2026 decline came from a statistical correction to the population level in January and from the steady effects of an aging population. Part of the decline was also due to a sharp June drop in participation among workers ages 25 to 54.
What is the prime-age labor force participation rate?
The prime-age labor force participation rate measures participation among people ages 25 to 54. This group is considered to be in its prime working years, so changes in its participation rate are closely watched as a signal of underlying labor market strength.
Where can I find state-level labor force participation rates?
State-level labor force participation rates are available from the Federal Reserve Bank of St. Louis FRED database. The release includes seasonally adjusted and not seasonally adjusted series for all states, with data beginning in January 1976.
Leave a Reply