Th2.5: Labour Flashcards
How can labour increase economic growth?
if it improves in quality or quantity
What are the two things that define a workforce?
quality of workforce
size of workforce
What can changes in the size of a workforce come from?
immigration, demography (age profile) of a country or participation rates
A change in the age profile of the population
i. e the amount of people of working age will affect economic growth
- the more people of working age there are, the more growth there will be
What will raising the retirement age do?
increase the population of the working age
What is one way the government can increase participation rates?
providing free childcare to encourage mothers to go back to work
Immigration can be vital in enabling economic growth if…
it provides potential workers with the skills, knowledge and desire to work within the country
On the whole, the larger the workforce…
the more goods and services can be produced
How can the quality of the workforce be improved in the long run?
focus on education
What will improved education do?
improve labour quality as it will mean that workers have all the skills they need and are more efficient, so output per worker increases
More skilled workers will also be less likely to suffer from… because…
structural unemployment as they will have greater occupational mobility and so this will increase the output of the economy as there are less unused resources
How will more skilled workers be able to contribute to change?
new technology, business ideas, innovation e.t.c
