This essay attempts to discuss the basic concepts that relate to labour force by giving their advantages and disadvantages. The essay will begin by defining the key term which is labour force, then the advantages and disadvantages of each measure shall be discussed in detail by computing the different measures that shall be discussed and then the essay concludes.
The concepts and definitions used in this discussion are based on those contained in the recommendation of the 13th International Conference of Labour Statisticians so as to improve comparability among countries and to give a more precise definition of labour force measurements. The term labor force refers to all members of the population above a minimum age who are either working or looking for work (Wilbert.1951). In terms of national economic accounts, the labor force can be thought of as the labor supply, the producers of the goods and services that are valued in the Gross National Product, normally the labor force of a country or other geographic entity consists of everyone of working age typically above a certain age around 14 to 16 and below retirement (around 65) who are participating workers, that is people actively employed or seeking employment. People not counted include students, retired people, stay at home parents, people in prisons or similar institutions, people employed in jobs or professions with unreported income, as well as discouraged workers who cannot find work (Rossell, 2003).
The main statistical objectives of the labour force measurements is to divide the population of working age (15 years and above) into three mutually exclusive and exhaustive groups; persons in employment, unemployed persons and inactive persons and to provide descriptive and explanatory data on each of these categories. Respondents are assigned to one of these groups on the basis of the most objective information possible obtained through the survey questionnaire, which principally relates to their...