✨What is the difference between Demographic Dividend (DD) and Labour Force Participation Rate (LFPR) ?

👉Definition :
DD : Economic growth potential from a higher share of working-age population
LFPR : % of working-age population (15–64 years) that is working or seeking work

👉What it shows :
DD: Demographic opportunity (structure of population)
LFPR : Actual economic participation of working-age people

👉Nature :
DD : Structural, long-term demographic trend
LFPR : Behavioural & economic indicator – changes more frequently

👉Dependency ;
DD : Potential is based on population age composition
LFPR : Utilisation depends on education, skills, jobs, and inclusion

👉Indicator of :
DD : Opportunity for growth
LFPR : Realisation of that opportunity

👉Policy Focus :
DD : Education, health, skilling of youth, population control
LFPR : Job creation, skill-match, female participation, mobility

👉Threat if mismanaged :
DD : Youth bulge becomes demographic burden
LFPR : High unemployment, underemployment, social unrest

👉Relevant Data Sources :
DD : UN World Population Prospects, Census
LFPR : PLFS (Periodic Labour Force Survey), ILO

👉 India’s status :
DD : In demographic dividend window till ~2055
LFPR : remains low (~57.9% overall; Female LFPR ~25%)

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✨What is the difference between Demographic Dividend (DD) and Labour Force Participation Rate (LFPR) ?

👉Definition :
DD : Economic growth potential from a higher share of working-age population
LFPR : % of working-age population (15–64 years) that is working or seeking work

👉What it shows :
DD: Demographic opportunity (structure of population)
LFPR : Actual economic participation of working-age people

👉Nature :
DD : Structural, long-term demographic trend
LFPR : Behavioural & economic indicator – changes more frequently

👉Dependency ;
DD : Potential is based on population age composition
LFPR : Utilisation depends on education, skills, jobs, and inclusion

👉Indicator of :
DD : Opportunity for growth
LFPR : Realisation of that opportunity

👉Policy Focus :
DD : Education, health, skilling of youth, population control
LFPR : Job creation, skill-match, female participation, mobility

👉Threat if mismanaged :
DD : Youth bulge becomes demographic burden
LFPR : High unemployment, underemployment, social unrest

👉Relevant Data Sources :
DD : UN World Population Prospects, Census
LFPR : PLFS (Periodic Labour Force Survey), ILO

👉 India’s status :
DD : In demographic dividend window till ~2055
LFPR : remains low (~57.9% overall; Female LFPR ~25%)

#upsc #UPSCPrelims2026

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175 viewsJul 4 at 11:21