Persons outside the labour force: how inactive are they really?: delving into the potential labour force with ILO harmonized estimates

This report explores the characteristics of the potential labour force, made up of persons outside the labour force with an attachment to the labour market. People of working age (usually defined as everyone aged 15 and above) can be classified according to their labour force status into three mutually exclusive groups: the employed (they have a job), the unemployed (they are jobless, but available and looking for a job), and persons outside the labour force (they are jobless but not available and/or not looking for a job). All persons in employment and those in unemployment make up the labour force, which represents the current supply of labour for the production of goods and services in an economy. Thus, persons who are neither employed nor unemployed, that is, persons outside the labour force are not part of the workforce. They do not constitute the labour supply, at least not in principle. Traditionally and in general terms, persons in the labour force support persons outside the labour force, often seen as dependents. Thus, people's participation in the labour force is key for economic growth, which is why it is crucial to monitor and understand labour force participation trends and patterns.

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