Labor force is the segment of a nation’s population that works for pay or is actively seeking work. This group produces most of the nation’s goods and services, and its size and productivity help determine the nation’s economic growth. The United States labor force expanded from about 2 million in 1800 to about 165 million in 2022. During this period, it changed from a mainly agricultural one to one composed mainly of industrial, service, and white-collar workers.
The United States government uses the term labor force for people at least 16 years old who have civilian jobs or are actively looking for jobs. Groups not in the labor force include some people with disabilities, full-time homemakers, retired people, students, and members of the armed forces. The labor force also does not include discouraged job seekers who have stopped looking for work because they think none is available.
The United Nations (UN) uses the term economically active population instead of labor force. The economically active population consists of people of all ages who are employed or looking for jobs. The percentages of teenagers and old people in this group are higher in many developing countries than in industrial nations.
Economists sometimes use the term human resources for the total number of people available to work if needed. During a war, for example, many people not normally in the labor force take jobs in war plants.
Changes in the labor force
since 1900 include differences in sex, age, and occupational makeup. In 1900, the labor force included only about 20 percent of American women, compared with 60 percent in the early 2020’s. Much of the increase was among married women working outside the home. A large number of women joined the labor force because of changing social attitudes, rising divorce rates, declining birth rates, and higher wages. Another cause of increased female employment was an increase in the number of white-collar jobs. White-collar jobs include business, clerical, and professional positions, which many women choose. The increasing availability of labor-saving household appliances since about 1950 has also contributed to the large participation of married women in the labor force.
During the same period, the percentage of men 65 and older who were in the labor force fell from about 65 percent to about 20 percent. A major cause of this decline in the number of older men in the work force was the introduction of Social Security, which enabled many older men to retire. Compulsory retirement rules, plus job discrimination against the elderly, also pushed older men out of the labor force.
In 1900, white-collar workers made up about 20 percent of the labor force, compared with about 60 percent in the early 2020’s. The percentage of farmworkers dropped from about 40 percent to about 11/2 percent during the same period. These changes resulted largely from improved technology, which boosted the demand for white-collar employees and reduced the need for agricultural workers.
The government and the labor force.
The U.S. government, through the Department of Labor, has various agencies and programs that promote employment of the labor force. For example, the department’s Employment Service matches jobseekers with available positions. The Job Corps program promotes employment by providing work training for disadvantaged youths.
The main job program of the U.S. government is a revenue-sharing plan authorized by the Workforce Investment Act of 1998. Under this law, state and local governments receive federal funds to provide job training for unskilled, needy youths and for needy adults. Private firms supply this training.
See also Job Corps; Labor, Department of; Labor Statistics, Bureau of (BLS); Migrant labor; Unemployment.
