HSC TYPE QUESTION - Quite reptitive (1 Viewer)

[moey16]

Identify One cause of an increause in the labour force participation rate, and briefly explain TWO economic effect of this increase.

can someone help me with it

 

[Jerruy]

1 cause of an increase: higher wages or lower taxation

a eco effects: increase unemployment in short term as they stuggle to find work. increse eco growth long term
reduction in inequality
improve standards of living etc

 

[redom]

an increase in growth levels can encourage hidden unemployment to re-enter the labour force, and thus increase participation rates. This will have the effect of raising unemployment levels in the short term, as it takes time to find suitable employment. The welfare to work package is expected to increase unemployment to 5% because of an increase in participation. Another effect could be an increase in transfer payments for those that have entered the labour force and not yet found employment.....(Jerruy covered the effects preety well!)