by Mike Shedlock, Global Economic Analysis:
Reader Denise wants to know precise definition of who is not in the labor force. That’s easy enough. The answer is found straight from the list of BLS frequently asked questions.
Who is not in the labor force?
Labor force measures are based on the civilian noninstitutional population 16 years old and over. (Excluded are persons under 16 years of age, all persons confined to institutions such as nursing homes and prisons, and persons on active duty in the Armed Forces.) The labor force is made up of the employed and the unemployed.
The remainder — those who have no job and are not looking for one — are counted as “not in the labor force.” Many who are not in the labor force are going to school or are retired. Family responsibilities keep others out of the labor force.
“Looking for a Job” is Key to Understanding Reported Unemployment Number
The BLS description seems logical enough except it ignores those who want a job but did not look in the past four weeks.
BLS questions (shown below) will root those people right out of the labor force.
That raises another question about what constitutes looking for a job. Reading the want-ads in the newspaper or even doing online searches does not qualify as “looking for a job”.
Applying for a job online constitutes looking for a job, so does going on an interview, and so does sending out a resume.
Applying for a job online constitutes looking for a job, so does going on an interview, and so does sending out a resume.
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