LABOR FORCE

LESSON 6
How can we make all the
labor force economically
active?
Labor Force

refers to persons aged 15 years and above ,

maybe employed or unemployed who posses
certain skills, abilities, talents, and maturity to be
a part of the production.
Importance of Labor Force
1. Process the raw materials of agriculture.
2. Conserve and utilize the natural resources.

3. Acts as consumers of the products.

4. Produce goods that are needed by the economy.
5. Operate and use machineries and other technology.
6. Give payment of taxes to the government.
Labor Force Participation Rate

It is the percentage of labor force who

are engaged actively in the production.

LFPR = Labor Force /

Working Age Population x 100
Working Age Population
- are those who belong to household
population.

Employed Persons
- are those persons in the labor who are
working or with a job or business
Employment
- is the situation where people have a job.

Employment rate = Employed /

Labor Force x 100
Reasons why we cannot fully use and
maximize our labor force.

 Insufficient job opportunity for workers

 The job availability is not suited to the

educational attainment of the job seeker.
Underemployment
- is the situation when the working hours of
workers are less than eight hours.

Underemployment rate = Underemployed /

Employed x 100
Unemployment
- is the situation where people cannot find a job and
no job is available in the market.

Unemployed
- are those people who do not have a job and still
looking for a job.

Unemployment rate = Unemployed /

Labor Force x 100
Different Types of Unemployment that
occurs in the economy.

• Structural
– when people lose their jobs as a result of decline in
industries due to technological advancement and change
in consumer taste.
Different Types of Unemployment that
occurs in the economy.

• Seasonal

– losing the jobs due to change of season or

weather.
Different Types of Unemployment that
occurs in the economy.

• Cyclical

– happens when there is economic slowdown

or crisis, industries tend to lay off workers.
Different Types of Unemployment that
occurs in the economy.

• Frictional

– occurs when people are moving from one

job to another.