Originally Posted by slapass

Labor Force = Number of Employed + Number of Unemployed

Labor Force Participation Rate = (Labor Force / Total Population over Age 16) * 100

Look at these closely. It is confusing how they wrote it but it is the total population and retired folks are counted as they are specifically mentioned as not being in the labor force.

I did the math based on that page you cited -

Small city with 10 people over 16. 2 are retired. So 8 are working.

Labor Force Participation Rate - 80%= ( 8 / 10 ) * 100

Labor force of 8 = 8 + 0 as the 2 are not unemployed they are retired.

Unemployment Rate = (Number of Unemployed / Labor Force) * 100

0 = (0/8)*100