Labour Market | Meaning, Concept, Mobility Of Labor, Types, Efficiency

The labor market can be defined as the arena where workers and employers interact to determine working conditions. It comprises individuals seeking employment, employers, and governmental entities.   The Concept Of Labor Force The labor force encompasses the total number of working-age individuals in a country who are either employed or capable and willing to […]

The labor market can be defined as the arena where workers and employers interact to determine working conditions. It comprises individuals seeking employment, employers, and governmental entities.

 

The Concept Of Labor Force

The labor force encompasses the total number of working-age individuals in a country who are either employed or capable and willing to work but currently unemployed. This group falls within the legally defined working age and represents both those with jobs and those actively seeking employment. The working-age population varies between countries.

Factors Influencing The Supply Of Labor Or Size Of Labor Force (Working Population)

Population Size: A larger population generally results in a higher working population, and vice versa.

Official School Leaving Age: A lower school leaving age correlates with a higher proportion of the labor force, and vice versa.

Official Age Of Retirement: Raising the retirement age tends to increase the labor force as more individuals remain available for work.

Remuneration Or Wage Rate: The level of salaries and wages directly influences the number of people willing to work.

Migration: Immigration increases, while emigration decreases the supply of labor.

 

Mobility Of Labor

Labor mobility pertains to the ease with which workers can transition between occupations or geographic locations.

 

Types Of Labor Mobility

Occupational Mobility: This involves workers moving easily from one job to another. For example, a messenger can switch to roles like cleaning or farming.

Geographical Mobility: This refers to the ease with which workers can relocate from one geographic area to another, such as from Port Harcourt to Jos.

 

Industrial Mobility: This involves movement within or between industries. Vertical mobility involves promotion within the same industry, while horizontal mobility involves moving between industries while performing the same role.

 

Causes Of Labor Mobility

Factors influencing labor mobility include unfavorable working conditions, marriage, irregular salary payments, promotion opportunities, poor management, climate, lack of job security, absence of social amenities, accommodation issues, political instability, and personal reasons.

 

The Efficiency Of Labor

Labor efficiency is the degree to which labor can be combined with other production factors to achieve maximum output without compromising quality.

 

Factors Determining Labor Efficiency

Factors influencing labor efficiency include education and training, general working conditions, worker health and access to healthcare facilities, incentive and remuneration levels, efficiency of other production factors, degree of specialization and division of labor, welfare services, and the worker’s state of mind, as well as weather conditions.

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