Definition
The count of individuals aged 16 years and older who are neither employed nor actively looking for work. This group includes retirees, stay-at-home parents, students, disabled individuals, and those discouraged from seeking employment.
Why It Matters
Provides insight into the segment of the population that is not directly contributing to the current labor supply. Understanding its composition reveals potential untapped workforce, unique needs, and social support requirements.
Specific Relevance for Professionals:
Marketers
Helps identify markets for products and services catering to specific groups within this category (e.g., retirement planning for older adults not in the labor force, home-based services for stay-at-home parents).
Researchers
Fundamental for studying reasons for non-participation in the labor force, hidden unemployment (e.g., discouraged workers), and the socio-economic characteristics of various non-working populations.
Consultants
Useful for advising clients on potential future labor supply, identifying demographic segments that could be drawn into the workforce, or understanding the market for services outside the traditional employment sphere.
Public Policy Workers
Critical for developing workforce activation programs, assessing the need for social support services, and understanding the demographic makeup of non-working populations for economic development and welfare policies.
