The reason we don't use LFP is because it doesn't impact prices that much. The UE rate does as it controls salaries which controls inflation/prices. LFP and U

The reason we don't use LFP is because it doesn't impact prices that much. The UE rate does as it controls salaries which controls inflation/prices. LFP and UE are both useful metrics, but they're used for different things. I am a big fan of labor force participation as I find the shift in our culture from a working one to one that doesn't interesting. However, from the point of view of inflation (a driver of the funds rate and our economy in general), you really need to look at the unemployment rate. Another way to look at it.. Changes in LFP rarely impact currency values much. Changes in UE rates do. And trust me, currency traders are very very apolitical. They care very little for conspiracy schemes. They just look at the relevant numbers and fight with their wallet.