Trends of labour (economics)
Labour is defined in economics for the real world as "the factor of production, which includes all kinds of human effort, bot mental and physical" The labour market is a critical feature of every economy and in no two countries of the world is it identical. You will recall that labour is one of the inputs into the production process (refer tp the circular flow model) along with land capital and enterprise. Labour is usually defined as the human effort required to produce goods and services. It can be viewed just as any other commodity in the market place. The labour market is a resource market which is subject to the influences of supply and demand. At any point in time there is a certain supply of labour and a level of demand.
At the same time adjustments have occurred through changes in the school leaving age and educational requirements for entry into occupations. The supply and demand graphs for goods and services reflect somewhat the supply and demand graphs for labour. The demand for labour is ever increasing, especially with the increasing population. It is the unqualified and inexperienced people who tend to be the ones stuck in the unemployed scene. The nature of this demand has been complicated by the technological revolution, which has led to the disappearance of many menial jobs and the need for a much more skilled workforce. If there is a significant surge in the demand for a product of service then likewise there is an increase for the demand of labour. On the supply side, the quantity of available labour has grown with the increase in population. Unemployment statistics show that it is becoming for those who are actively searching for jobs to acquire them. The supply of labour can be influenced by the age and health of the population, education standards, government legislation and entry restrictions imposed by labour organisations. Having said that however, the qualified and skilled people are usually employed straight out of school or university. The demand for labour tends to be influenced by the state of the economy, the need for labour in the production process and expectations of producers for the future. Factors affecting the demand for labour:1 general economic trends2 profit expectations3 size of industry4 size of market5 scale of production6 capital intensivenessFactors affecting the supply of labour:1 size of labour force2 strength of unions3 wages offered4 skills necessary5 training necessary6 prestige of job7 dangers of job8 geographical location9 non monetary benefitsin recent decades we have seen significant changes in the labour market. An economies demand for labour is derived from prevailing macro- and microeconomic conditions and tends to reflect challenging conditions, such as those brought about by the effect of technological change. Both of these factors are dynamic in nature.
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