In labor force terms, what does 'out of the labor force' mean?

In labor force terms, what does 'out of the labor force' mean?

• A. Not employed and not looking for work
• B. Employed part-time
• C. Unemployed but seeking work
• D. Retired

Answer: (A)

In labor force terms, the idea being tested is who counts as part of the labor force. The labor force includes people who are currently employed and those who are unemployed but actively seeking work. Out of the labor force means you’re neither employed nor actively looking for work. Not employed and not looking for work is the broad, standard description of this group, which covers students, retirees, homemakers, and others not seeking employment. Retirement is one reason someone might be out of the labor force, but the defining description is the absence of employment and of job-search activity.

In labor force terms, the idea being tested is who counts as part of the labor force. The labor force includes people who are currently employed and those who are unemployed but actively seeking work. Out of the labor force means you’re neither employed nor actively looking for work. Not employed and not looking for work is the broad, standard description of this group, which covers students, retirees, homemakers, and others not seeking employment. Retirement is one reason someone might be out of the labor force, but the defining description is the absence of employment and of job-search activity.