INTRODUCTION 

This file contains the technical notes for data products associated with “International Comparisons of 

Annual Labor Force Statistics, 1970-2012”, at www.bls.gov/fls/flscomparelf.htm. Data in associated 

reports and tables present selected labor force statistics adjusted to U.S. concepts for 1970 onward for

the United States and fifteen foreign countries: Australia, Canada, France, Germany, Italy, Japan, the

Republic of Korea, Mexico, the Netherlands, New Zealand, South Africa, Spain, Sweden, Turkey, and the

United Kingdom.

Data in the report refer to the civilian working-age population and are based on figures mainly from

national statistical agencies, but also from the Organization for Economic Cooperation and 

Development (OECD) and the Statistical Office of the European Communities (EUROSTAT). The U.S. data

are from a labor force survey (also referred to as a household survey) called the Current Population

Survey (CPS). Foreign-country data are based mainly on labor force surveys. All data come from

secondary sources; that is, BLS does not conduct any surveys to collect data for foreign countries.

To the extent possible, foreign-country data are adjusted to concepts used by the U.S. Current Population 

Survey (CPS). This document provides an introduction to the U.S. concepts, but further details are 

available in the BLS Handbook of Methods, Chapter 1, “Labor force data derived from the Current

Population Survey,” at www.bls.gov/opub/hom.

Why are adjustments necessary?

Persons counted as employed, unemployed, or not in the labor force may differ across countries. Some

types of workers that are categorized differently include new entrants to the workforce, persons on layoff

or working part-time, students, and unpaid family workers. For example, whereas most foreign countries

count all unpaid family workers as employed, the U.S. only includes them if they worked at least 15

hours per week. Also, foreign countries sometimes include the career military or national defense force in

the labor force, whereas U.S. data are based on the civilian labor force. Another difference between U.S.

and foreign-country definitions is with regards to age limits. The lower age limit of the working-age

population according to U.S. concepts is 16 while most foreign countries collect data on the working-age 

population ages 15 and older. In addition, some countries may have an upper age limit.

To compare across countries, these definitional differences must be taken into account. Thus, the foreigncountry data presented in the report are adjusted to a common framework: concepts used by the U.S. 

Current Population Survey. Adjustments made for each country are discussed in the country notes.

BLS does not adjust to U.S. concepts in the following cases:

• Lower age limits of the working age population. Lower age limits are adjusted to the age at

which compulsory schooling ends rather than the U.S. lower age limit of 16 (for exceptions, see

the working-age population section).

• Persons on layoff classified as employed. In the United States, persons on layoff are classified as

unemployed because of weak job attachment; however, in some countries, persons on layoff are

classified as employed because of strong job attachment. Strong job attachment is determined by

Technical Notes

International Comparisons of Annual Labor Force Statistics, 

1970-2012

International Labor Comparisons
national circumstances and is evidenced by, for example, payment of salary or the existence of a 

recall date.

• Unpaid family workers or persons waiting to start a new job classified as employed. For some

countries, no adjustment is made for deviations from U.S. concepts in the treatment of unpaid

family workers and persons waiting to start a new job.

• Passive jobseekers classified as unemployed. While Australia, Japan, New Zealand, and South

Africa exclude passive jobseekers from the unemployed, in accordance with the U.S. concept, the

other countries do not. An adjustment is made to exclude them in Canada only.

• Upper age limits of the working age population. In the United States, there is no upper age limit 

for inclusion in the working age population. Data for the Netherlands and South Africa have

upper age limits. Unemployment for the Netherlands has an upper age limit of 75. All data

for South Africa have an upper age limit of 64.

For further information on comparability issues, see Constance Sorrentino, “International unemployment

rates: how comparable are they?” Monthly Labor Review, June 2000, pp. 3-20, at

www.bls.gov/opub/mlr/2000/06/art1full.pdf.

DEFINITIONS AND BACKGROUND

UNEMPLOYMENT

In the United States, unemployment includes all persons who, during the reference week:

1. Had no employment,

2. Were available for work, except for temporary illness, and

3. Had actively sought work during the 4-week period ending with the reference week.

Active job search methods are those that have the potential to result in a job offer without further action

on the part of the jobseeker. For example, sending a resume to an employer would be considered

active, whereas simply reading newspaper advertisements would not.

Persons who were waiting to start a new job must have fulfilled these criteria to be considered 

unemployed. However, persons who were waiting to be recalled to a job from which they had been

laid off need not have been looking for work.

The unemployment rate represents the percentage of persons in the labor force who are unemployed.

HOW IS UNEMPLOYMENT MEASURED?

Because unemployment insurance records, which many people think are the source of total 

unemployment data, relate only to persons who have applied for such benefits, and since it is impractical

to actually count every unemployed person each month, the United States Government conducts a

monthly sample survey to measure the extent of unemployment in the country.

Use of a labor force survey to count the unemployed, a longstanding practice in the United States, is

also common in most foreign industrialized countries. Countries in the European Union are now required

to use a labor force survey to count the unemployed, although some had previously depended on

administrative sources, such as employment office registrations or unemployment insurance records, to

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measure unemployment. Countries also may continue to produce unemployment statistics from 

administrative sources. Administrative statistics from employment office registrations or unemployment

insurance records relate only to persons who have registered or applied for benefits and are not an

accurate measure of total unemployment because only a subset of workers is covered. Labor force

surveys, on the other hand, provide a more complete measure of unemployment because the data are

based on a representative sample of the population. However, concepts and definitions of unemployment

in labor force surveys may differ from country to country, and thus BLS makes adjustments to provide

foreign-country data that are more comparable with U.S. concepts and definitions.

Annual averages of unemployment figures and other labor force statistics adjusted to U.S. concepts are

presented in the annual report, at http://www.bls.gov/fls/flscomparelf.htm. BLS also publishes a monthly

report with seasonally adjusted monthly and quarterly unemployment rates and employment indexes, at 

www.bls.gov/ilc/intl_unemployment_rates_monthly.htm.

ALTERNATIVE MEASURES OF UNEMPLOYMENT

Although there is only one official unemployment rate in the United States, several other rates with 

alternative definitions of unemployment are also published by BLS. These rates are known as U1 

through U6 and have the following definitions:

• U-1: Persons unemployed 15 weeks or longer, as a percent of the civilian labor force

• U-2: Job losers and persons who completed temporary jobs, as a percent of the civilian labor force

• U-3: Total unemployed, as a percent of the civilian labor force (official unemployment rate)

• U-4: Total unemployed plus discouraged workers, as a percent of the civilian labor force plus 

discouraged workers

• U-5: Total unemployed, plus discouraged workers, plus all other marginally attached workers, as

a percent of the civilian labor force plus all marginally attached workers

• U-6: Total unemployed, plus all marginally attached workers, plus total employed part time for

economic reasons, as a percent of the civilian labor force plus all marginally attached workers

(A brief discussion of discouraged and marginally attached workers is provided in the labor force

section.)

U-3, the official unemployment rate, is the most widely reported by the media and, most importantly, it

is the basis of the international comparisons presented in the report.

Although BLS does not prepare regular international comparisons of alternative measures of

unemployment as described in this section, several articles have been published on the topic, including:

• Constance Sorrentino, "International unemployment indicators, 1983-1993," Monthly Labor

Review, August 1995, at www.bls.gov/opub/mlr/1995/08/art4full.pdf;

• Constance Sorrentino, "International comparisons of unemployment indicators," Monthly Labor

Review, March 1993, at www.bls.gov/opub/mlr/1993/03/art1full.pdf;

• Gary Martin, "Employment and unemployment in Mexico in the 1990s," Monthly Labor Review,

November 2000, at www.bls.gov/opub/mlr/2000/11/art1full.pdf; and

• Toshihiko Yamagami, “Utilization of labor resources in Japan and the United States,” Monthly Labor

Review, April 2002, at www.bls.gov/opub/mlr/2002/04/art3full.pdf.

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EMPLOYMENT

According to U.S. definitions, employment includes all persons who, during the reference week:

1. Worked at least 1 hour as paid employees, worked in their own business, profession, or on their

own farm, or worked at least 15 hours as unpaid workers in a family-operated enterprise, and

2. All those who did not work but had jobs or businesses from which they were temporarily absent

due to vacation, illness, bad weather, childcare problems, maternity or paternity leave, labormanagement dispute, job training, or other family or personal reasons, regardless of whether

they were paid for the time off or were seeking other jobs.

Each employed person is counted only once, even if he or she holds more than one job. For purposes of

industry classification, multiple jobholders are counted in the job at which they worked the greatest

number of hours during the reference week.

Persons whose only activity consisted of work around their own house (painting, repairing, or own

home housework) or volunteer work for religious, charitable, and other organizations are excluded.

The employment-population ratio represents the proportion of the working-age population that is 

employed.

CAN I MEASURE JOB GROWTH WITH YOUR EMPLOYMENT DATA?

No, the BLS comparative employment data in the report cover employment rather than jobs. 

Employment and jobs are different concepts. In a tally of employment (based on a labor force survey),

persons who hold more than one job are counted only once. In a tally of jobs (based on an establishment 

survey), persons who work in more than one establishment are counted each time their names

appear on payrolls. There are additional differences between the U.S. labor force (household) and

establishment (payroll) surveys, as described in “Employment from the BLS household and payroll

surveys: summary of recent trends”, at www.bls.gov/web/ces_cps_trends.pdf.

Note that across countries, labor force surveys provide greater comparability of labor force statistics than

do establishment surveys. However, using employment data from a labor force survey to measure change

over time would represent employment growth rather than job growth.

EMPLOYMENT BY SECTOR

Employment levels and distributions are shown for four broad economic sectors: agriculture, industry,

manufacturing (a sub-sector of industry), and services.

Sectoral employment data are based on the North American Industry Classification System (NAICS) for the

United States for 2000 onward, Canada for 1976 onward, and Mexico for 2005 onward. Data for Japan are 

based on the Japanese Standard Industrial Classification System (JSIC). For all other countries

covered, sectoral employment data are based on the International Standard Industrial Classification

(ISIC). Effects of the change in classification system are discussed in the country notes.

LABOR FORCE

The labor force is comprised of persons who are in employment and unemployment. All members of the

working-age population are eligible for inclusion in the labor force, and those 16 and over (in the United

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States; age limits vary by country) who have a job or are actively looking for one are so classified. All

others—those who have no job and are not looking for one—are counted as "not in the labor force."

The labor force participation rate represents the proportion of the working-age population that is in the

labor force. Conversely, the inactivity rate represents the proportion of the working-age population that

is not in the labor force.

WHO IS NOT IN THE LABOR FORCE?

All persons in the civilian non-institutional working-age population who are neither employed nor

unemployed are considered not in the labor force. Many who do not participate in the labor force are

going to school or are retired. Family responsibilities keep others out of the labor force. Still others have

a physical or mental disability which prevents them from participating in labor force activities.

In the United States, persons not in the labor force who want and are available for a job and who have

looked for work sometime in the past 12 months (or since the end of their last job if they held one

within the past 12 months), but who are not currently looking, are designated as “marginally attached to

the labor force.” The marginally attached are divided into those not currently looking because they

believe their search would be futile—so-called “discouraged workers”—and those not currently looking

for other reasons such as family responsibilities, ill health, or lack of transportation.

For discouraged workers, the reasons for not currently looking for work are that the individual believes 

that:

• No work is available in his or her line of work or area;

• He or she could not find any work;

• He or she lacks necessary schooling, training, skills, or experience;

• Employers would think he or she is too young or too old; or

• He or she would encounter hiring discrimination.

The report does not provide international comparisons for discouraged workers but several relevant

articles are cited in the unemployment section.

WORKING-AGE POPULATION

The labor market statistics provided in the report describe the working-age population. In the United

States, the working-age population is more specifically known as the civilian non- institutional workingage population:

• “Civilian” refers to persons who are not on active duty in the military;

• “Non-institutional” refers to persons who are not in institutions, such as prison inmates or those

in a mental institution; and

• “Working-age” refers to persons 16 years of age and older.

Data also refer to the civilian non-institutional working-age population for the foreign-country data except

for Japan and Germany, where the institutional population is included. The lower age limit is 16 for the

United States; the lower age limits for the foreign countries are shown in Figure 1 on this page.

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Data are, in fact, adjusted to the age at which compulsory schooling ends for each country except for

Canada and the Netherlands. For Canada, adjusted data cover persons ages 16 and over for 1976 onward,

whereas the age at which compulsory schooling ends remains at 15. For the Netherlands, adjusted data

cover persons ages 15 and over for 1975 onward, although the age at which compulsory schooling ends

is now 16.

For some countries, the data reported by the national statistical agency have an upper age limit. For

these countries, except South Africa, BLS adjusts for this divergence from the U.S. concept; therefore, the

adjusted series for most countries have no upper age limit. Working-age population for South Africa has 

an upper age limit of 64.

FIGURE 1 LOWER AGE LIMITS

Country Unadjusted Adjusted Country Unadjusted Adjusted

United States 16 NA Mexico 14 NA

Australia 15 NA Netherlands

Canada 1973-74 13 14

 1970-75 15 NA 1975-87 14 15

 1976-present 15 16 1988-present 15 NA

France 15 16 New Zealand 15 NA

Germany South Africa 15 NA

 1970-74 14 15 Spain 16 NA

 1975-83 14/15 15 Sweden

 1984-present 15 NA 1970-2004 16 NA

Italy 2005-present 15 16

 1970-92 14 NA Turkey 15 NA

 1993-present 15 NA United Kingdom

Japan 15 NA 1970-72 15 NA

Republic of Korea 15 NA 1973-present 16 NA

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