Participation Rate: What It Is And Where It Stands

The Participation Rate is the amount of people actively in the workforce or actively looking for a job. When the participation rate rises, it generally shows more people believe the economy is solid and they can get jobs. When the participation rate falls, it means people believe the economy is poor and they are giving up on prospects of finding a job.

The trend on the participation rate has been inching lower over the last six months. However, the latest number up-ticked slightly from 62.2% to 62.3%. While it inched higher, investors should not assume a trend change as the Non Farm Payrolls Report was weaker.