Regional Variation – Urban characteristics

Work Participation Rate(WPR)

Foundation Course :– 2021-22 Sem-1
Name : Bhappa Riya Khimji
Exam Seat No : C.21.44
Division : A Roll No: 44
Class : FYBCom Group No: 6
Submitted to: Dhanlaxmi Medida
 - Intro
᷈ The labor force participation rate is an estimate of an economy’s active workforce.
᷈ The formula is the number of people ages 16 and over who are employed or actively seeking
employment divided by the total noninstitutionalized, civilian working-age population.

- Key Takeaways
1. The labor force participation rate indicates the percentage of all people of working age who are
employed or are actively seeking work.
2. Used in conjunction with the unemployment numbers, it offers some perspective into the state of
the economy.

-Factors
o Economic Factors
o Social Factors
o Demographic Factors
 Global Labor
Global labor force participation has shown a steady decline
since 1990. According to the World Bank, the global labor
participation rate stood at 58.6% at the end of 2020, down
from 62.4% when the decade began.

As of 2020 the countries with the highest labor force

participation rates, 80% or higher, were Qatar, Madagascar,
Zimbabwe, the Solomon Islands, Rwanda, and Tanzania.
The countries with the lowest labor force participation
rates, 40% or below, were Yemen, Jordan, Algeria,
Moldova, and Tajikistan
 What does WPR measures??
What affects WPR ??
Why is WPR important?
 WPR in India
The Labor Force Participation Rate in India stood at 49.80% in the
fiscal year 2017-18, as per the National Sample Survey Office
(NSSO) Periodic Labor Force Survey (PLFS) report.
Labor Force Participation Rate in India from 2005 until 2018
averaged 53.90%, reaching an all-time high of 63.70%in 2005 and
a record low of 49.80% in 2018.
 How can we increase WPR

1. Expand earned income tax credit for childless adult.

2. Introduce work requirements to MEDICAID.
3. Reform disability insurance.
4. Improve workforce training.
 Conclusions
 The declining labor force participation rate is a phenomenon that could
threaten long-term economic growth in India

 Particularly problematic is the long-term stagnation in the labor force

participation rate of prime-age female workers and the over half century
decline in the prime-age male participation rate.

 Fortunately, policymakers have a number of options to help combat this

trend.

 If successful, these efforts will not only encourage more people to work
—they will also spur much-needed economic growth.
THANK YOU