What does it mean to be "out of the labor force"?

Being "out of the labor force" refers to individuals who are not participating in the labor market, meaning they are neither employed nor actively seeking employment. This status can apply to various scenarios, but a critical criterion is that the individual has not worked in the previous week and has not looked for work in the last four weeks.

This definition is important because it differentiates those who may be temporarily out of work from those who have completely disengaged from seeking employment. For instance, people who are unemployed but are actively seeking work would still be considered part of the labor force, while those who have chosen not to look for jobs—perhaps due to other commitments or personal choices—fall into the category of being "out of the labor force."

In contrast, receiving government assistance, being on leave from employment, or being retired and not looking for work represents different statuses and motivations that do not strictly align with the definition of being "out of the labor force."