Formal Labor Force

The formal labor force refers to individuals who are actively participating in the economy through paid employment or who are seeking work. This includes people working for companies, government jobs, and self-employed individuals who report their income. In contrast, those not in the formal labor force include discouraged workers who have stopped looking for jobs, retirees, students, and those unable to work due to various reasons. Labor force participation is a key measure of economic activity, reflecting how many people are engaged in or pursuing work compared to the total working-age population.