SS2 First Term Economics Lesson Note – Labour Market

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WEEK 9           

TOPIC:  LABOUR MARKET

CONTENT-

• Demand for and supply of labour
• Wages determination

Sub –Topic: Supply of and demand for labor

Labor market is any arrangement or medium which brings job seekers and employers of labour together. It is a market in which workers sell their labour in order to earn wages i.e. labour supply.

THE CONCEPT OF LABOUR FORCE

Labour force may be defined as the total number of capable men and women who are gainfully employed and those who fall within the age bracket, capable and willing to work but have no work to do in a country at a particular period of time. It varies from country to country, usually those whose ages fall in the age’s bracket of 18-65years and are still not in school; belong to the labor force of a country.

The labour force also known as the working population is the productive sector of a country’s total population. It is also defined as the economic active segment of a country’s population.

SUPPLY OF LABOUR

Supply of labor refers to the total number of men offered for employment over a period of time and at a given wage rate

FACTORS AFFECTING THE SUPPLY OF LABOUR

1. The size of the labour force, which determines the number of people who are ready and willing to work.
2. The amount of training and length of time it takes to acquire the skills to do the job.
3. The availability of other sources of income.
4. Labour mobility.
5. Social and cultural factors.
6. Quality of life factors in the community where the job is located.
7. Money of the factors that affect worker’s productivity will also affect the willingness of workers to supply their labor.

DEMAND FOR LABOUR

Demand for labour may be defined as the total number of workers employers are willing and ready to employ at a particular time and at a given wage rate. Demand for labour as a factor of production is a derived demand which is derived from the demand for the product which laborers are going to produce.

FACTORS AFFECTING THE DEMAND FOR LABOUR

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