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Skip Navigation LinksLabour Market Statistics and Publications > Concepts > Persons Outside the Labour Force Uses and Limitations
Persons Outside the Labour Force Uses and Limitations
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Uses and Limitations

Data on persons outside the labour force (also known as the economically inactive) by age, sex and reasons for inactivity help identify possible sources of manpower supply especially during manpower shortages. Specifically, it would be interesting to consider those in their prime-working age since these persons are generally expected to be in the labour force, having completed their education and have not yet reached the retirement age.

A low inactivity rate is generally preferable to a high rate because it shows that economies are providing workers with sufficient labour market activity. Nonetheless, a high inactivity rate for certain groups should not necessarily be viewed as “bad”.  For instance, a relatively high inactivity rate for persons aged 15 to 24 may simply reflect that youths are deferring their entry to the labour market to pursue higher education which will improve their career prospects in subsequent years.