The size of the working population actively engaged in or seeking employment is determined by summing the number of employed individuals and the number of unemployed individuals. Employed individuals are those currently holding a job. Unemployed individuals are those not currently holding a job but actively seeking work. For example, if a region has 100,000 people employed and 10,000 people unemployed but actively searching for work, then the working population would be 110,000.
This figure provides a critical snapshot of an economy’s productive capacity and overall health. Monitoring its size and composition allows policymakers and economists to assess resource availability, identify potential skill gaps, and develop strategies to foster job creation. Historically, fluctuations in this figure have been key indicators of economic cycles, revealing periods of growth, contraction, and recovery.