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If Labour Force Participation rate (LFP) of a country increases, it indicates that the
Skilled population in the country is increasing.
Country’s adult population is increasing.
Number of people who are either employed or are actively looking for work is increasing.
Number of people who are employed is increasing.
It is a measure of the active portion of an economy's labour force. It refers to the number of people who are either employed or are actively looking for work. The number of people who are no longer actively searching for work would not be included in the participation rate. During recession many workers often get discouraged and stop looking for employment that is why the participation rate decreases. Analysis of National Sample Survey data shows that India has been experiencing declining and low rates of female labour force participation. This is concentrated mostly among married women in rural areas. Some suggest that this is partly because women with medium levels of education choose to spend more time on child care and domestic work.
By: Pradeep Kumar ProfileResourcesReport error
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