Labour force
Definition. The labour force is the total number of people who are of working age and are either employed or unemployed, meaning they are willing and able to work and actively seeking a job. It excludes those not seeking work, such as full time students, retirees and homemakers.
The unemployment rate is calculated as the number unemployed divided by the labour force, expressed as a percentage. Changes in the participation rate alter the size of the labour force and so affect measured unemployment.
This term belongs to Unemployment in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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