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Quick Question (1 Viewer)
- Thread starter mattchan
- Start date
Conspirocy
Member
an increase in the participation rate is represented by an increase in the labour force and therefore the number of people who are currently employed and/or actively seeking work. The main factor that would cause this is associated with economic growth. Economic growth is to do with perception and can be associated with the discouraged worker effect. in times of strong economic growth workers re - enter the workforce in the hope of finding employment. therefore a decline in economic growth could lead to a fall in the particiaption rate as an inverse relationship.
labour is a derived demand. economic growth could lead to more business investment. if firms need to invest in labour to expand they be willing to offer i higher price for labour. many workers are not in the workforce because they are not recieving the price the require for their labour. therefore an increase in the price of labour would result in more people entering the workforce attracted by the higher wages.
thats all i can think of off the top of my head hope it helps
labour is a derived demand. economic growth could lead to more business investment. if firms need to invest in labour to expand they be willing to offer i higher price for labour. many workers are not in the workforce because they are not recieving the price the require for their labour. therefore an increase in the price of labour would result in more people entering the workforce attracted by the higher wages.
thats all i can think of off the top of my head hope it helps
gibbo67
Member
in addition to the above:
1. the median age of the popluation and the median retirement age can affect the labour force participation since all people over the age of 15 are included in the working age population,
2. people undertaking full time study are not included in the labour force - one phenomenon my eco teacher explained is that often in a recession, high school retention rates can increase due to the lack of current job opportunities, many students feel that their best chance of a job in the near term relies on finishing high school. however this could be counter balanced with high school dropouts resulting in a diminution of family income
1. the median age of the popluation and the median retirement age can affect the labour force participation since all people over the age of 15 are included in the working age population,
2. people undertaking full time study are not included in the labour force - one phenomenon my eco teacher explained is that often in a recession, high school retention rates can increase due to the lack of current job opportunities, many students feel that their best chance of a job in the near term relies on finishing high school. however this could be counter balanced with high school dropouts resulting in a diminution of family income