Labor force

In economics the labor force is the group of people who have a potential for being employed.

Related Topics:
Economics - Employed

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Normally, the labor force consists of everyone above a certain age (around 14 to 16) who are participating workers, that is people actively employed or seeking employment. People not counted include students, retired people, stay-at-home parents, people in prisons or similar institutions, as well as discouraged workers who simply do not want work.

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The ratio between the labor force and the overall size of the population is known as the labor force participation rate. In the West during the latter half of the 20th century, the labor force participation rate increased significantly, largely due to the increasing number of women entering the workplace.

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The fraction of the labor force that cannot find work determines the unemployment rate.

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