Labor Force, Unemployment and Participation Rates

Labor Force:

Included:

Ok, everyone over 16 and under 65, who is legally able to work, and actually working or looking for a job, is a bona fide member of the Labor Force.

Excluded:

Active-duty military, prisoners in jails and prisons, disabled and hospitalized folks, full time students, and anyone else who doesn't choose to work (stay-at-home spouses, for example) or doesn't have to work (lottery winners for example!), or has just gotten so discouraged looking for a job without finding one, that they had just gone and given up.

The Unemployment Rate:

We take everyone in the labor force as the denominator, and anyone in the labor force without a job in the numerator, do the division and multiply by 100 to turn the resulting decimal into a percentage.

Labor Participation Rate:

Take everyone technically able to work in the denominator, and all of those who are in the labor force (see above), do the division, and multiply by 100 to turn the resulting decimal into a percentage.

Question: Are there any problems with determining these rates?