Labor Force Definition

A labor force is the total number of employed and unemployed workers in a given country, state, or region. For example, a small city’s labor force might be 3,000 individuals while a populous state’s labor force might be measured in the millions. When the term is used in conjunction with a company, it means the number of employees of the company. A labor force is an aggregate number which is useful when comparing potential output of one region to another.