ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Sometimes the term labor force is also called the civilian labor force because it doesn’t include military service members or federal workers. If a person actively chooses not to work, like a stay-at-home parent, full-time student, or retired person, they are not included in the labor force.

Detailed explanation-2: -Persons who are neither employed nor unemployed are not in the labor force. This category includes retired persons, students, those taking care of children or other family members, and others who are neither working nor seeking work.

Detailed explanation-3: -The employed and the unemployed together make up the labour force. It is the supply of labour available in an economy for the production of goods and services. Thus, people who are neither employed nor unemployed (outside the labour force) are not part of the labour supply.

Detailed explanation-4: -Who is in the Labor Force? Persons “in the labor force” are those in the civilian noninstitutional population, age sixteen years or older, who are employed or who are unemployed and seeking employment.

Detailed explanation-5: -The labor force participation rate is the percentage of the civilian noninstitutional population 16 years and older that is working or actively looking for work. It is an important labor market measure because it represents the relative amount of labor resources available for the production of goods and services.