Factors which affect the Participation Rate (Economic Activity)
- Real Wage
If real wages are increased it may encourage people to enter the labour force.
- Benefit Levels
If benefits are too generous such as disability allowance people may prefer to be economically inactive than get a job.
- Job Satisfaction
If work is seen as unattractive people may be put off joining the labour force
- Provision of Child care
Single mothers may be unable to work unless there is suitable child care provision
- Flexible labour markets:
If there is more choice of jobs such as part time and flexible hours it may be easier for people to enter the labour force.