You’re mistaken,

The labor force participation rate is calculated as: (Labor Force ÷ Civilian Noninstitutional Population) x 100

The civilian noninstitutional population excludes the following:

active duty members of the U.S. Armed Forces

people confined to, or living in, institutions or facilities such as

prisons, jails, and other correctional institutions and detention centers

residential care facilities such as skilled nursing homes

Included in the civilian noninstitutional population are citizens of foreign countries who reside in the United States but do not live on the premises of an embassy.

The civilian non institutionalized population does not exclude people not looking for work nor non institutionalized elderly/retired persons