Civilian Labor Force in the U.S. 2025: Size, Rates, and Key Insights

Clay Halton, a seasoned Business Editor with over five years in finance publishing, specializes in personal finance content with an emphasis on LGBTQ+ financial issues.

What Is the Civilian Labor Force?

The civilian labor force represents the segment of the U.S. population aged 16 and older who are either employed or actively seeking employment, excluding active military members, federal government employees, institutionalized persons, and agricultural workers. This classification is maintained by the Bureau of Labor Statistics (BLS) to provide insight into the country's employment landscape.

Notably, certain groups such as retirees, individuals with disabilities, and discouraged workers—those who have stopped job hunting due to lack of opportunities—are not included in this labor force count, sparking debate among economists regarding the accuracy of official employment figures.

Key Highlights

• The civilian labor force encompasses working-age adults who are employed or actively seeking work, excluding military personnel and certain other groups.
• Discouraged workers and some disabled individuals are excluded, which may understate true unemployment.
• Alternative unemployment measures, like the U-6 rate, offer a broader perspective by including underemployed and marginally attached workers.

Components of the Civilian Labor Force

The BLS divides the civilian labor force into two main groups:

1. Employed persons: Those who performed paid work for at least one hour during the reference week or worked unpaid for a family business for 15 hours or more.
2. Unemployed persons: Individuals not currently working but who are available for work and have actively searched for employment in the past four weeks.

Individuals who desire employment but have ceased job searching due to discouragement or other factors are not counted as part of the labor force.

Understanding Unemployment and Participation Rates

The official unemployment rate is calculated by dividing the number of unemployed individuals by the total civilian labor force. However, this measure may not fully capture the employment challenges faced by discouraged or underemployed workers.

Alternative Unemployment Metrics

The BLS also publishes the U-6 unemployment rate, which includes part-time workers seeking full-time employment and discouraged workers, providing a more comprehensive view of labor market slack.

The civilian labor force participation rate measures the proportion of the civilian noninstitutional population aged 16 and older that is in the labor force. This rate peaked at 67.3% in early 2000, declined notably during the COVID-19 pandemic, and has been gradually recovering, reaching 62.2% for ages 25 to 54 as of May 2023.

Impact of Demographic and Economic Factors

Retirement trends among the baby boomer generation and technological changes such as automation have contributed to shifts in labor force participation. Economic recessions also play a significant role in influencing these rates.

Who Are the Discouraged Workers?

Discouraged workers are individuals who have stopped looking for employment in the past four weeks or longer because they believe no jobs are available for them. While they are unemployed, they are excluded from the official U-3 unemployment rate but included in the broader U-6 measure.

Current Size and Statistics of the U.S. Civilian Labor Force (2024)

As of December 2023, the civilian labor force comprised approximately 167.5 million people, with a participation rate of 62.5%, slightly higher than the previous year. The official unemployment rate stood at 3.7%.

States With Lowest and Highest Unemployment Rates

Maryland reported the lowest unemployment rate at 1.8% in November 2023, followed by North Dakota (1.9%) and South Dakota (2.0%). Conversely, Nevada (5.4%), the District of Columbia (5.0%), and California (4.9%) had the highest unemployment rates.

Conclusion

The civilian labor force is a critical metric tracked by the U.S. Department of Labor that includes those employed or actively seeking work, excluding military and certain other populations. While the official unemployment rate provides valuable insight, it may underrepresent the true extent of joblessness due to the exclusion of discouraged and disabled workers. For a more complete understanding, reviewing the BLS's U-6 unemployment rate is recommended.

Discover engaging topics and analytical content in Economics as of 12-01-2024. The article titled " Civilian Labor Force in the U.S. 2025: Size, Rates, and Key Insights " provides new insights and practical guidance in the Economics field. Each topic is meticulously analyzed to deliver actionable information to readers.

The topic " Civilian Labor Force in the U.S. 2025: Size, Rates, and Key Insights " helps you make smarter decisions within the Economics category. All topics on our website are unique and offer valuable content for our audience.