"People not included in the participation rate include those who do not want to work or can't work. This includes people such as students, homemakers, incarcerated people and retirees."
The labor participation rate doesn't include homemakers.
You misunderstand. It groups those who do not work and are looking for a job, with those who work, as being part of the labour force, and thus "participating". Nonparticipants are anyone not looking for work, like homemakers, students, retirees, etc
The labor participation rate doesn't include homemakers.