Reference: Economic Statistical Facts - Labor Rates

US Labor Participation Rates - As Of March 2010

The importance of the "labor participation rate" is that it negates the claim that the official unemployment rate does not capture an accurate picture of employment.

Since the rate is based upon the entire population of workers (active or potential) in following the fluctuations of this rate the unemployment rate will be given greater context.

Often we hear claims that the government has the propensity to label a greater number of people as "discouraged workers" so that they can be removed from the calculation of the unemployment rate.  The more of them are removed - the lower the rate will fall, making the picture more sunny than it really is.

States with Unemployment Rate below the national average