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Labor Force

Definition

The labor force consists of all people above a certain age who are either employed or actively seeking employment. It includes both those who have jobs (employed) and those who do not but are actively looking for work (unemployed).

Analogy

Imagine the labor force as a big pool filled with people swimming around looking for jobs. Some people have already found employment (they're working), while others are still searching for job opportunities (unemployed).

Related terms

Unemployment Rate: The unemployment rate is the percentage of the total labor force that is unemployed but actively seeking employment at any given time.

Labor Market: The labor market refers to the supply of available workers in relation to the demand for workers by employers. It's where individuals offer their skills and services in exchange for wages or salaries.

Job Market: The job market refers specifically to the availability of job openings and opportunities for employment within a specific industry or field.