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The labour force consists of all individuals within the population of working age who are either currently employed (including self-employed) or are unemployed but actively seeking work. It represents the pool of people who are, or wish to be, engaged in work outside the household.

Labour Force

The participation rate is a key labor market statistic defined as the ratio of the labor force to the total population of working age. This metric measures the proportion of the working-age population that is economically active, meaning they are either employed or actively seeking employment.

Participation Rate

The unemployment rate is a key labor market metric that measures the proportion of the total labor force that is jobless but actively seeking employment.

Unemployment Rate

An employed person is an individual of working age who, during a specified reference period, performed any work at all for pay or profit, or worked without pay in a family business. This category includes full-time, part-time, and temporary employment, as well as self-employment.

Employed Person

An unemployed person is an individual who is able and willing to engage in work but is not currently employed.

Unemployed Person

Consider the following descriptions of four working-age individuals:

1. A chef who works 40 hours a week at a restaurant.
2. A recent college graduate who is not employed but has been applying for jobs every week.
3. A retired individual who volunteers at a local library but is not seeking paid work.
4. A full-time student who is not looking for a job.

Which of these individuals are considered part of the labour force?

A national statistics agency reports the following data for a country's working-age population:

- Employed individuals: 150 million
- Individuals without a job who have been actively applying for work in the past month: 8 million
- Full-time university students not seeking work: 5 million
- Retired individuals: 25 million
- Individuals without a job who would like to work but have not looked for a job in the past month: 2 million

Based on this information, calculate the total size of the country's labour force and explain which groups from the report are included and which are excluded in your calculation.

Labour Force Calculation

Imagine a country where a large number of previously discouraged workers, who had stopped looking for employment, are now inspired by new government incentives to actively search for jobs again. Explain how this change in behavior affects the total number of people in the labour force, and break down the impact on its two main components.

Impact of Worker Behavior on Labour Force Size

The classification of an individual as either 'employed' or 'unemployed' is exclusively reserved for those who are members of the labour force. Individuals who are not in the labour force, known as the economically inactive, cannot be categorized under either of these employment statuses.

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