Which groups are included in the labor force?

The labor force consists of all people who are either employed or actively seeking employment. This definition includes those currently working (the employed) as well as those who do not have jobs but are looking for work (the unemployed). This comprehensive view helps economists and policymakers assess the overall health of the labor market.

The employed contribute to the economy by producing goods and services, while the unemployed, who are seeking work, indicate potential labor availability and economic readiness. This distinction is important in understanding unemployment rates and labor market conditions.

In contrast, options that only include the employed or the unemployed would not provide a complete picture of the labor force and would overlook a significant portion of those engaged with the labor market. The option suggesting the working-age population is also broader than the labor force, as it includes individuals who are neither employed nor actively seeking employment, such as students or retirees. Therefore, option A accurately captures the entire spectrum of the labor force.