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.
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.