What distinguishes employed workers from unemployed workers?

The distinction between employed workers and unemployed workers primarily lies in their employment status. Employed workers are individuals who have jobs, meaning they are actively engaged in work for which they receive compensation. In contrast, unemployed workers are those who do not currently hold a job but are actively seeking employment.

This classification is essential in labor economics and workforce statistics because it helps in assessing the labor market's health, measuring unemployment rates, and developing policies related to employment and training. Although skills level, work location, and age range can influence a person's employability, they do not fundamentally define whether an individual is employed or unemployed. The critical factor that sets apart these two groups is indeed their current employment status.