Why are people who are unemployed but not looking for work not included in the unemployment figures?

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2026-05-18 07:55

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People who are unemployed but not actively seeking work are not included in unemployment figures because these figures are based on the labor force, which includes only those who are actively looking for employment. This distinction helps provide a clearer picture of the labor market's health. The rationale is that individuals not seeking work may not be considered part of the workforce, as they are not engaged in job search activities. Consequently, they are categorized as "discouraged workers" or "not in the labor force."

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