The labor force consists of all the people who are able to work in a country or area, or all the people who work for a particular company.
We determine the unemployment rate by using the labor force size.
Formula to calculate labor force.
Employed means that one is in the service of another. Such a person is entitled to rights and liable to perform certain duties.
Unemployed refers to a person who is actively searching for employment is unable to find work.
Example:
In an economy, there are 20 million employed people and 10 million unemployed people. Calculate the total labor force.
Therefore, the total labor force of the economy is 30 million people.
