The labour force is defined as all people fifteen years and over and under sixty five years who are either working or actively looking for employment.

To be counted as a member of the Australian labour force, you must be a permanent resident of Australia.

You are not considered as part of the labour force if you are attending an educational institution on a full time basis, or if you have retired before the age of 65 years, or if you are permanently incapacitated and unable to work. You are also not considered as part of the labour force if you are in prison, or hospitalised.

Analyse the diagram below.

What is meant by the terms:

• fully employed
• not fully employed
• unemployed
• in the labour force
• not in the labour force

Diagram copyright Australian Bureau of Statistics 1999