Categories
Economics

Labour as a factor of production

Labour as a factor of production is defined as both physical and mental effort of man directed to production.

Labour also refers to all human effort which may be physical or mental, skilled or unskilled, scientific or artistic, using the productive process usually for a reward. It is one of the variable factors of production. The reward for labour is a WAGE OR SALARY

TYPES OF LABOUR

  1. Unskilled labour
  2. Semi- skilled labour
  3. Skilled labour

CHARACTERISTICS OF LABOUR

  • Labour is a human factor of production
  • Labour is mobile
  • Labour is not fixed
  • Labour cannot be stored like capital
  • Labour requires motivation
  • It is variable in supply
  • Labour can be skilled through training
  • The reward of labour is wage or salary.

IMPORTANCE OF LABOUR

  1. Labour provides the necessary man power or personnel required for the production of goods and services
  2. It is an active factor of production
  3. Labour is required in industries to operate machines and carry out the various production process.
  4. It influences other factors of production actively. Labour plays an active role on other factors of production because without labour, land and capital will remain idle.
  5. Labour helps to produce goods and services for people’s consumption.

EFFICIENCY OF LABOUR

Efficiency of labour is the ability of labour to attain higher level of output with a reduction in the quality of output. It is referred to an increase in productivity per labour employed.

Efficiency of labour is enhanced by the level of education and training.

FACTORS DETERMINING EFFICIENCY OF LABOUR

  • Education and training
  • Provision of welfare services
  • Improved working conditions
  • Job security
  • Availability of necessary equipment and tools
  • Technological improvement
  • Improvement in health facilities
  • Quality of other facilities
  • Application of division of labour and specialization
  • High wages or salaries
  • Promotion
  • Climate conditions
  • Effective and efficient management

We are interested in promoting FREE learning. Tell your friends about Stoplearn.com. Click the share button below!

Download our free Android Mobile application: Save your data when you use our free app. Click to Download StopLearn app.

Download free editable Resume/CV templates: Click here. Ask your question: Expert tutors will personally reply you usually within 24 hours.