Question

Why is the “labor participation rate” important? By referring to three real world cases (one being the increase in women’s participation in the labor force) explain how social and economic changes can affect this variable?

Answer 1

Ans) Labour force participation rate is the percentage of civilian non-instituitional population which is working or actively looking for job.

Labour force participation rate = (labour force ÷ working age population)×100

It is seen that after ww2, there has been a shift in trend of labour force participation rate.

Whereas the labour force participation rate of women has risen, the labour force participation rate of men has decreased. Further there is an overall increase in labor force participation rate.

Labour force participation rate of women has increased due to invention of technologies like fridge, oven, washing machines, mixer etc, which has made the households work easier. Further there is an improvement in birth control measures and there have been changes in social and political attributes.

Labour force participation rate of males has decreased because,now, they spend more time in college as compared to their fathers and grandfathers, due to more participation of women they can take household roles and another reason being that more older men are retiring.

It is estimated that in coming decades labour force participation rate will decline due to improved life expectancy and low birth rates.