KEY POINTS:
- The labor force participation rate measures the share of the population that is employed or actively seeking employment.
- The record-long economic expansion has pulled workers off the sidelines, raising the labor force participation rate for most states.
- Among the states with the largest increases in the labor force participation rate since December 2016 are West Virginia, Iowa, and Massachusetts.
ECONOMIST CORNER:
Individuals must make the decision of whether to work or hold out for a more favorable employment situation. This decision is based on a variety of factors, including wages, tax rates, and opportunities for retirement. While the U.S. macroeconomy is entering a record-long expansion, there are differences in labor force participation among states. Generally, however, states have seen improvements in labor force participation.