Question

In your own words, describe the concept of the “Added Worker” and comment on how the presence of the Added Worker in the labor force could influence the unemployment rate (UN%) and the Labor Force Participation Rate (LFPR).

Answer 1

Answer : Added workers meaning that temporary increase in the labour Supply of the married women whose husband become unemployed.The statistics measures shows that there is a double effect increase in the labour Supply as husband already searching job and married wife also attached to the labour effect.

The presence of added workers have been increased unemployment rate tremoundsly.In the theory of added workers we assume that married women are secondary workers with a less permanent attachment to the labour market than their partners. This analysis shows that there is increase in the unemployment rate as the workers itself as well as their married wife have been attached to the labour force which resulted in increasing the number of unemployed people.

This influence the increasing number of unemployment rate in an economy.