Define labour force participation rate and explain why it is always less than 100%?

Define labour force participation rate and explain why it is always less than 100%?

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Expert Solution

labour force participation rate refers to the number of people available for work as a percentage of total population .It indicate percentage of working people who are employed /actively seeking for work. Labour is always less than 100%.there are few reason for this ,they are

1)Economic factors :Industrialization tend to increase the employment opportunity thus attract people to leave their household production.During economic recession ,the labor force participation rate will fall as because loss of work to the workers

2) Social factors: In these days , women participation is higher .In developing countries , when participation of women labor is higher it lead to reducing of proverty and thus increase the economic development .But most of the countries have gender disparities like low income to women than men ,caste issues ,tradition which hither the women participation in labor force .

Rahul Sunny answered 1 month ago

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