How can the labour force of a country change?
Changes in the labour force can be caused by,
Change in demography: a fall in birth rate in developed countries, people choosing to start work later for educational reasons and retiring early because of rising income are reasons that will reduce the size of the workforce.
Changes in participation rates: a higher participation rate can be caused by government incentives such as lower rates of income tax. due to an increase in the number of women that are returning to or starting work has also increased participation rates in different regions of the world.
Changes in net migration: this refers to the difference between immigration and emigration. if the net migration is positive then the size of the workforce will increase.
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