Question

Why the work participation rate is tends to be higher in the areas of lower level of economic development in india?​

Answer 1

Answer:

ECONOMY ECONOMICS

Labor Force Participation Rate

By INVESTOPEDIA STAFF

Reviewed By ROBERT C. KELLY

Updated Sep 25, 2020

What Is the Labor Force Participation Rate?

The labor force participation rate is a measure of an economy’s active workforce. The formula for the number is the sum of all workers who are employed or actively seeking employment divided by the total noninstitutionalized, civilian working-age population.

The U.S. labor participation rate stood at 61.7% as of August 2020, according to the federal Bureau of Labor Statistics, which publishes updates monthly.1 The monthly figures have hovered around 63% since 2013, after a sharp decline in the wake of the Great Recession. In August 2020, there were 13.6 million unemployed, up 7.6 million from the 6 million in August 2019.

Answer 2

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★ Question:-

→ Why is it that the worker participation rate tends to be higher in the areas of low economic development in the context of India?

★ Answer:-

→ The higher worker participation rate in India in areas of low economic development is likely due to the fact that —

• These areas have fewer job opportunities and therefore more people are willing to take on any job they can find, regardless of the wages or working conditions.

• Additionally, in areas of low economic development, there is often a lack of access to education and other resources, which can lead to a higher rate of underemployment and a greater reliance on informal labour.

• Finally, in areas of low economic development, there is often a greater need for workers.

• In the context of India, this situation arises because more number of manual workers are required to perform subsistence or near subsistence economic activities which demand more physical labour.

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