Labor Force
Total employed/unemployed people available for work.
Formula
Labor Force Participation Rate = (Labor Force ÷ Working-Age Population) × 100
Real World
Japan faces a shrinking labor force due to an ageing population, prompting companies like Toyota to invest heavily in robotics and automation to maintain output.
Exam Focus
Distinguish between labor force size and labor force skills — examiners reward candidates who address both quantity and quality.
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