Study Notes

Labour Force Participation (Labour Markets)

AQA, Edexcel, OCR, IB

Last updated 4 Apr 2018

What is the labour force participation rate?

The labour force participation rate measures the percentage of the population of working age who economically active (i.e. employed or looking for work).

In some rich countries such as Japan and Italy where natural population growth is negative, their low participation rates are acting as a significant drag on aggregate supply growth / trend rise in potential GDP.

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