The International Labour Organization defines a person as being out of the workforce if they are neither employed nor unemployed. This category includes retirees, students, people caring for family members, and those who are not working or looking for work. To determine if someone is out of the workforce, information is collected about their desire and availability for work, their job search activity in the previous year, and the reasons why they are not currently looking for it. The economic inactivity rate is the proportion of the working-age population that is not part of the labor force.
People outside the labor force (also known as economically inactive people) are those aged fifteen or older who are not employed or unemployed (i.e., they are neither working nor actively seeking work). It is important to note that being out of the labor force does not necessarily mean that a person is not contributing to society. People who are out of the labor force may still be engaged in activities such as volunteering, studying, or caring for family members. It is also important to understand that being out of the labor force does not necessarily mean that a person is not looking for work.
Many people who are out of the labor force may still be actively searching for employment opportunities.