How Labor Force Affects the Economy?
1. Economic Development: An increasing economy can benefit from a rising and productive labor force, since it can generate more goods and services.
2. Innovation and the Progress of Technology: New technology adoption and innovation depend on a trained and educated labor force. Technological progress fueled by a skilled labor force can improve the competitiveness and overall efficiency of the economy.
3. Levels of Income and Living Standards: Wages typically increase with an increasingly productive labor force, leading to higher earnings and a better standard of living.
4. Social Welfare and Unemployment: There are important social and economic consequences to the rate of unemployment among the working population.
5. Worldwide Competitiveness: A nation’s productivity and skill level of its labor force are important factors in its global competitiveness.