Question

What is the difference between being unemployed

and being out of the labor force?

Short answer

There is a very thin line between a person who is unemployed and a person who is out of the workforce.

Step-by-step solution

Step 1. Introduction

The persons who have no work or no job can be categorized into one of the two categories either out of the labor force or unemployed.

So, in order to clear this fuzzy line between unemployed and out of the workforce, we have to know the concept and definition.

Step 2. Explanation

Unemployed is a person who is constantly looking for a job or work and he/she is also capable of doing work but don’t able to get a job then they are unemployed.

On the other hand, being out of the workforce means a person is capable of doing work but he/she is not constantly looking for the job as a person who is out of the workforce. For example, students and retired persons.