ABSTRACT

The labor force is defined as the sum of those persons who are employed and those who are unemployed. Before defining these terms, we should note that the definitions have been developed in conformity with the nature of CAPITALISM and would not have meaning in pre-capitalist economies. For example, it is important to define and measure unemployment because unemployment is a serious problem in capitalist economies but not in prior modes of production (see RESERVE ARMY OF LABOR). In addition, the labor force is confined to those who either work for wages or are seeking such work. Therefore, work outside of the labor market is ignored, despite the fact that it may be socially useful labor (see HOUSEHOLD LABOR; HOUSEHOLD PRODUCTION AND NATIONAL INCOME).