Labor Force and GDP Analysis
From an economic viewpoint, labor force involves all individuals that are willing and ready to work. Labor force differs to populace because some members within different societies cannot perform some tasks because of their disabilities or situations. Others are simply unwilling to work. Examples of people who are unable to work due to their situations include students who are enrolled for full-time programs. Others are the disabled individuals.
Only the people who are involved in active work are included in the labor forces of various institutions, self-employment or family businesses. In addition, people can be classified as a part of the labor force when they seek employment for a specific period such as four consecutive weeks (Garrido & Toharia, 2004). According to these facts, students who have not graduated are not part of any labor force especially if they are enrolled for full-time courses.
The society is misled by GDP when it uses it to measure economic progression since it does not provide a difference between activities that are destructive to the environment and productive activities. Phenomena that include sickness, criminal activities as well as natural disasters can cause an increase in GDP. This occurs because people and the society spend money on these phenomena. For instance, money is spent in treating the injured people, repairing damages and jailing prisoners. As such, an increase in GDP lowers life’s quality in the society. GDP does not also account for every activity that does not yield monetary rewards (Frey, & Stutzer, 2010).
The market economy’s production is measured by real GDP. Thus, it is not a demonstration of the measure of the well-being of the society. Contrary to this, real GDP has an association with the results that are valued by the people. For instance, there is a connection between higher literacy, maternal death, longer lifespan as well as reduced newborn deaths and increase in real GDP for every person (Stiglitz, Sen & Fitoussi, 2009).
Frey, B. S., & Stutzer, A. (2010). Happiness and economics: How the economy and institutions affect human well-being. Princeton University Press.
Garrido, L., & Toharia, L. (2004). What does it take to be (counted as) unemployed? The case of Spain. Labour economics, 11(4), 507-523.
Stiglitz, J., Sen, A., & Fitoussi, J. P. (2009). The measurement of economic performance and social progress revisited. Reflections and overview. Commission on the Measurement of Economic Performance and Social Progress, Paris.