What does the labor force participation rate measure?

The labor force participation rate measures the percentage of the working-age population that is actively engaged in the labor market, whether employed or actively seeking employment. This metric provides valuable insights into the economic activity of a society and indicates how many people are willing and able to work. A higher participation rate suggests a more robust economy with more individuals contributing to the labor force, while a lower rate may indicate economic challenges or demographic shifts.

In context, the other options do not accurately capture this definition. The percentage of the population that is unemployed pertains specifically to those not currently employed but actively seeking work, and does not reflect overall participation in the labor force. The total number of employed individuals provides information on just one segment of the labor market, without considering those seeking work. Lastly, the total number of retirees in the workforce is not a relevant measure for participation rates, as it focuses on a specific demographic rather than the broader working-age population's engagement in the labor market.