Introduction to the Labour Market

Question 1

Define economically active?

Answer 1

People employed and unemployed - people in work or seeking it

Question 2

Define economically inactive?

Answer 2

Those neither in work nor seeking it. These sections of the population are not part of the labour suppply

Question 3

Define population of working age?

Answer 3

People between ages 16-65, the age at which the state pension becomes available. The definition is expected to change gradually over time.

Question 4

Define working population?

Answer 4

Also known as the labour force, work force or labour supply. This indicates people in work, along with people actively seeking it

Question 5

Define the labour supply?

Answer 5

Total number of people willing and able to work along with people in work

Question 6

Define participation ratio?

Answer 6

A calculation of the percentage of the population of working age that is economically active - (labour supply / population of working age) x 100

Question 7

Why might people be economically inactive?

Answer 7

1. Looking after family / home
2. Short / long term sick
3. Discouraged workers
4. Student
5. Retired

Question 8

Main trends for the labour market?

Answer 8

1. Female participation ratio increased - 1971 - 10%. 2011- 16.8%
2. Labour force increased - 1971 - 26 million. 2011 33.5 million