Labour force growth refers to what?

• A. The total population.
• B. The number of jobs available.
• C. The unemployment rate.
• D. The growth of the 'labour force,' or the number of people who can work.

Answer: (D)

Labour force growth refers to the growth of the labour force, or the number of people who can work. The labour force includes everyone who is employed plus those who are actively seeking work. It is not the total population, which includes people who aren’t looking for work, nor is it the number of jobs available, which tells us about demand for labor. It’s also not the unemployment rate, which measures what share of the labour force is without work. When the labour force grows, there are more people who could fill jobs, which can affect employment and wages depending on how many jobs exist and how productive the economy is. Growth happens as more people reach working age, participate in the labour force, or immigrate.