Categories: Lesson Notes

SS1 Commerce Lesson Note on Factors that determine types of Occupation

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TOPIC: OCCUPATION

CONTENT:

(a) Factors that determine types of occupation

(b) Factors that determine employment

SUB TOPIC 1: FACTORS THAT DETERMINE TYPES OF OCCUPATION

  1. Climatic and weather condition: The climatic and weather condition will determine the type of occupation people engage in e.g. fishermen in riverine area.
  2. Natural resources: The availability of natural resources affects the choice of employment e.g. miners
  3. Education and skill: The Education and skill an individual acquire will influence the type of occupation he is involved in. e.g. doctors
  4. Salary and Wages: The remuneration and condition of service will affect the choice of occupation.
  5. Industrial hazards: The risk of a job also determines people’s involvement in the job.
  6. Other factors are interest, policies of the government etc.

SUB TOPIC 2: FACTORS THAT DETERMINE EMPLOYMENT

Two broad factors that influence employment are

  1. Demand for Labour
  2. Supply of Labour (Availability of labour and the quality of labour)

DEMAND FOR LABOUR

The demand for labour comes from the employer and the employer of labour will be influenced by;

  1. Labour intensive: The extent to which labour is used in the production of goods and services will determine the demand for labour. Where labour is relatively cheap compared to capital, firms will prefer to employ labour in the production of goods and services.
  2. Wage rate: The wage rate that a business needs to pay for each additional worker employed will influence how many workers the business will demand. If the wage rate is high, it will be more costly to hire extra worker and as such it will affect the demand for labour.
  3. Economic climate: A general improvement in the economic climate of the country will have effect on industrial output, causing a need for more labour.
  4. Technology: Technological advancement tends to reduce demand for labour. So if a business uses more of technological equipment, the demand for labour will decrease.

SUPPLY OF LABOUR

The availability of labour (labour supply) is influenced by many factors which include:

  1. The size and structure of the population: A large population will provide a greater supply of labour.
  2. The number of women at work: The economic situation in the country, wages paid to women and attitude towards working mothers will affect the supply of labour.
  3. Hours of work: Shorter working hours will affect the supply of labour because workers will prefer working for fewer hours.
  4. Quality of the labour force:  If the required skills are not available, this will affect the supply of labour.
  5. Adequacy of health: It is important to provide adequate health care to keep the population healthy.

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