Unemployment Rate Stays Steady at Pandemic Low of 3.6 Percent

The labor force participation rate is the percentage of the working-age population who are members of the labor force. The labor force is the sum of employed and unemployed. If all new jobs are filled by the unemployed, the labor force doesn’t change, so the labor force participation rate doesn’t change. The unemployment rate is the percentage of people in the labor force who are unemployed. If all new jobs are filled by the unemployed, the number unemployed decreases, and the unemployment rate falls.

If the 390,000 people are employed and then switch to a new job, the labor force doesn’t change and the number unemployed doesn’t change, so the unemployment rate remains the same.