What is Labour Force?
The term “labor force” refers to the portion of the population that is either employed or actively seeking employment. It includes individuals who are currently working in paid jobs, as well as those who are unemployed but are actively looking for work and are available to work. The labor force plays a critical role in driving economic activity, productivity, and growth. It is a key focus of policymakers, researchers, and businesses seeking to understand and address labor market challenges and opportunities.
Features of Labour Force:
- Employment Status: The labor force comprises individuals who are employed in various capacities, including full-time, part-time, temporary, or self-employed positions. It also includes individuals who are unemployed but are actively seeking employment.
- Demographic Characteristics: The labor force encompasses individuals from various demographic groups, including different age mates, genders, ethnicities, educational backgrounds, and skill levels.
- Labor Market Dynamics: The labor force interacts with employers, industries, and economic conditions to determine labor market dynamics such as job creation, wage levels, labor shortages, and workforce participation trends.
Difference between Labour Force and Workforce
The Labour Force and Workforce have a thin line of difference that needs clarification. The term labor force refers to the portion of the population that is either employed or actively seeking employment, whereas the term workforce refers to the total number of people who are employed by a particular organization, company, industry, or within a specific geographic region.