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Labour Force

Updated on: October 14, 2026 Sneha Gondhale 1 min read

The labor force is made up of people actively engaged in employment or looking for work within a specific geographic area or country. It includes both people who are currently employed and those actively seeking employment. The labor force is a key metric in economic analysis, since it influences indicators like the unemployment rate. It does not include people who are not seeking employment, such as retirees, full-time students, or anyone not actively participating in the job market.

Who counts as employed in the workforce?

An employed person is typically anyone aged 16 or older who works for pay or profit. This includes full-time, part-time, and temporary work, as well as self-employment. During any given BLS survey reference week, a person counts as an employed part of the labor force if any of the following apply:

  • They completed one paid hour or more of work for an employer or at their own business.
  • They performed at least 15 hours of unpaid work at a business owned by a family member.
  • They were temporarily absent from work, due to PTO, parental leave, or a strike, for example, but still hold a job.
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