Labor Force

Learn about Labor Force and more with Workstream and improve your hiring vocabulary. Workstream helps companies hire better, faster - everyday.
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What is the meaning of the labor force? 

The labor force refers to the total number of people who are presently employed and the number of people who are actively seeking employment. Keep in mind that those who are unemployed and are not looking for work are not counted as part of the labor force. To give you a better idea:

Are they part of the labor force? 

Simply put, if you are unemployed and you are not actively looking for work, you are not part of the labor force. 

Measuring the labor force is the responsibility of the U.S. Bureau of Labor Statistics. Knowing the number of the labor force is significant in measuring the country’s employment report and unemployment rate. 

The labor force is affected by economic events. When layoffs and downsizing are rampant, job seekers tend to be discouraged and may stop applying for available job opportunities. This can reduce the labor force.

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