UK Labour Market Participation

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.