The labor force is everyone who is working or actively looking for work. It excludes children, retirees, and adults who have given up searching. The labor force participation rate measures the share of the working-age population that is in the labor force.

The size of the labor force matters for economic growth. More workers mean more output. But the quality of the labor force matters too. A country with a large, unskilled workforce will grow differently than one with a smaller, highly educated one.

Labor force trends shape policy. Aging populations shrink the labor force, which puts pressure on pensions and healthcare. Immigration can offset the decline. Automation changes what kinds of labor are needed. Policymakers watch these numbers closely because they drive tax revenue and social spending.

Key measures

• Labor force participation rate
• Unemployment rate
• Employment-to-population ratio
• Discouraged workers
• Underemployment