The participation rate is a measure of how many people are actively participating in an economic activity, such as employment or consumer spending. It is calculated by dividing the number of participants by the total population and then multiplying that result by 100 to get the percentage. The participation rate can provide insight into the health of the economy because it shows how many people are contributing to economic growth through their activities, such as working or spending money. A high participation rate indicates a strong labor market and robust consumer demand, while a low participation rate may suggest that there is slack in the economy and that more people could be participating if conditions were better.