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Economics

Concept of Labour Force

LABOUR MARKET

Labour market is defined as a market which workers and employers are brought into contact and conditions of work are decided.  It is made up of people who are looking for job, employers and government.

THE CONCEPT OF LABOUR FORCE

Labour force can be defined as the total number of people of working age in a country who are gainfully employed and those who fall within the age bracket, capable and willing to work by law but have no work to do in a country at a particular period of time.

Labour force is the working population and it comprises all persons who have jobs and who are seeking for jobs in the labour market.  They are between the age of 18 years and 60 years.  Working population varies from one country to another.

FACTORS AFFECTING THE SUPPLY OF LABOUR OR SIZE OF LABOUR FORCE (WORKING POPULATION)

  1. THE SIZE OF POPULATION: The higher the size of the population, the higher the working population and vice versa.
  2. OFFICIAL SCHOOL LEAVING AGE: If the school leaving age is low, the proportion of labour force will be high and vice versa
  3. OFFICIAL AGE OF RETIREMENT: If the age of retirement is raised the supply of labour will tend to increase because more people will be available for work
  4. LEVEL OF REMUNRATION OR THE WAGE RATE: The extent of salaries, wages and other remunerations paid to the workers determines the number of people who may be willing to work.
  5. MIGRATION: Immigration will increase and emigration will decrease the supply of labour.

MOBILITY OF LABOUR

The mobility of labour refers to the ease with which workers or labour can move from one occupation to another or from one geographical area to another.

TYPES OF LABOUR MOBILITY

  1. OCCUPATIONAL MOBILITY OF LABOUR: This refers to the ease with which workers can move from one job to another.  For instance, a messenger can easily change to become a cleaner or a farmer.
  2. GEOGRAPHICAL MOBILITY OF LABOUR: This refers to the ease with which workers can move from one geographical location to another.e.g Port Harcourt to Jos.
  3. INDUSTRIAL MOBILITY OF LABOUR: This refers to the ease with which workers can move within the same industry or from one industry to another.

Industrial mobility of labour has two aspect; vertical industrial mobility of labour and horizontal industrial mobility of  labour.

Vertical mobility of labour usually takes the form of promotion with the same. For example, the Vice-Principal of a school could be promoted Principal.

Horizontal or lateral mobility of labour takes place when a worker move from one industry to another but still performs the same task occupies the same rank. For example, an Accountant can leave the Star Beer factory at Aba for the textile mills at Aba.

CAUSES OF MOBILITY OF LABOUR OR FACTORS INFLUENCING MOBILITY               OF LABOUR

  1. Unfavorable working condition
  2. Marriage
  3. Irregular payment of salaries
  4. Promotion
  5. Bad management
  6. Climate
  7. Lack of job security
  8. Lack of social amenities
  9. Accommodation problem
  10. Political instability
  11. Personal reasons.

                                    THE EFFICIENCY OF LABOUR

The efficiency of labour refers to the extent or degree to which labour can be combined with other factors of production to yield maximum output.

In other words, efficiency of labour is the ability of labour to attain higher level of output without a reduction in the quality of output.

FACTORS DETERMINING EFFICIENCY OF LABOUR

  1. Education and training
  2. General working conditions
  3. Health of workers and availability of improved health facilities
  4. The amount of incentives or remuneration given to workers
  5. Efficiency of other factors of production
  6. Degree of specialization and division of labour
  7. Welfare services and state of mind of the worker
  8. Weather conditions

QUESTIONS ( USE THE COMMENT BOX BELOW TO POST YOUR ANSWER FOR DISCUSSION AND EVALUATION)

  1. What factors do you consider likely to affect the efficiency of labour in your country
  2. Distinguish between occupation and geographical mobility of labour

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