What term describes the total of employed and unemployed people?

• A. Labour Force
• B. Participation rate
• C. Unemployment
• D. Underemployment

Answer: (A)

The main idea here is understanding what counts as the labour force. The labour force is the total number of people who are able and willing to work, and who are either currently employed or actively seeking work. This makes up the employed plus the unemployed. It does not include people who aren’t looking for work at all, such as many students, retirees, or those not seeking employment for other reasons. So the term that describes the total of employed and unemployed people is Labour Force. The other terms refer to different ideas: unemployment is only those without work who are seeking a job, underemployment is people who are employed but want more hours or better fitting work, and the participation rate is the proportion of the population that is in the labour force, not the total number itself.