Core concept
Labour Force: It refers to the total population in a country or region that is of working age (usually 15-64 years old), currently employed or actively seeking work.
Unemployment Rate: The percentage of the unemployed population to the total labor force, it is a key indicator for measuring economic health and social stability.
The influence on the country
1 Economic aspect：
First of all, the size and quality of the labor force directly affect productivity and GDP growth. Adequate labor force is the cornerstone of manufacturing and service industries.
Secondly, a high employment rate increases residents' income and stimulates consumer demand. High unemployment rates curb consumption and lead to economic contraction (such as the soaring unemployment rates in many countries after the 2008 financial crisis dragging down the recovery).
Finally, the increase in the unemployed population will expand social welfare expenditures and increase the financial burden on the government (for example, in some European countries, the proportion of unemployment benefits exceeds 10% of the annual budget).
2 Social level：
First of all, long-term high unemployment rates (especially youth unemployment) are prone to trigger social unrest (for example, the "Arab Spring" in 2011 was directly related to the youth unemployment rate exceeding 30%).
Secondly, aging societies (such as Japan) are facing a shortage of labor force and need to rely on immigration or automation technology to fill the gap.
The impact on the world：
Firstly, changes in the labor force in major manufacturing countries (such as China and Germany) will affect the global industrial chain (for instance, the shutdown of factories in Vietnam during the pandemic led to a global shortage of electronic components).
Secondly, the disparity in unemployment rates drives cross-border labor mobility (such as the flow of South Asian workers to the Middle East), but it also exacerbates the economic imbalance between developed countries and low-income countries.
Finally, countries with low unemployment rates (such as Singapore) attract foreign investment, while countries with high unemployment rates may fall into the "poverty trap" (for example, the unemployment rate in some African countries has long been above 20%).