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Start With the Population
We start with the entire population of the nation. But we don’t want the entire population working (after all do you want your 3-year old cousin to be ‘employed’?). So we subtract three groups of people: children, people in institutions such as prisons, and active-duty military. These people are presumed to not be available to take jobs in the economy.
This leaves us with the Civilian Adult Non-Institutionalized Population.