The labor market and the workforce concept

Labor is any form of human effort put into or used in production. In other words, it refers to man’s mental and physical efforts generated in the production process. Market, on the other hand, is a point or place or any means of communication by which sellers and buyers can communicate with each other to exchange goods and services at prices determined by market forces. The labor market is thus defined as a market in which buyers and sellers of labor are in close contact during which wages and other conditions of services are determined and agreed upon. Labor is the factor of production that is normally bought and sold on the market.

workforce

The labor force is the total number of people available to supply labor for the production of economic goods and services. In other words, it is the total number of people of working age in a country who are able and willing to work by law. It is the active or working population and includes all the people who have a job and those who are looking for a job in the labor market. They are usually between the age range of 18 to 65 years. The active population varies from country to country. To be a member of the labor force, one must be of working age (18-65 years), fit for work, that is, also not have a disability. Mentally or physically, and must be willing to work. People who are not members of the workforce include:

– Children of school age (0-17 years)

– Elderly (over 65 years old)

– The disabled (either physically or mentally)

– People even though they are physically able but are not willing to work.

labor demand

The demand for labor is the total number of workers that employers are willing and willing to employ or hire at a given time and at a given wage. The demand for labor is a derived demand, because labor is not required for its own sake but for what it can help to produce. The factors that affect the demand for labor are:

1. The size of the market: The size of the market for goods and services produced determines the demand for labor. The larger the market, that is, the greater the production of goods and services, the greater the demand for labor to produce the required goods and services.

2. Number of industries: the greater the number of industries that produce the necessary goods and services, the greater the demand for labor

3. Labor price wage rate: The demand for labor by employers depends on the price at which labor is offered for sale (by workers). If labor is willing to accept a low wage, the demand for labor will be high.

4. Availability of other factors of production: If other factors of production, such as land and capital, are available in large quantities to produce the required goods and services, there will be a correspondingly high demand for labor.

5. Labor Efficiency: If labor efficiency is high, there will be a high propensity for employers to hire more labor and vice versa.

6. Demand for goods and services: The demand for goods and services in a country can stimulate an increase in the demand for labor.

7. Nature of Industries: The nature of industries, whether capital intensive or labor intensive, will determine the demand for labor. Labor intensive industries will lead to high demand for labor.

8. Employment status: Employment status determines the demand for work. If the economy has reached full employment, there will be little or no demand for labor, but if there is underemployment, there will be a need to demand more labor.

job offer

Labor supply is the total number of people of working age offered for employment at a given time and at a given wage. In other words, labor supply can be referred to as the labor services available in the labor market. The factors that affect the supply of labor or the size of the labor force are as follows:

1. Size of the population of a country: The greater the population, the greater the number of labor to offer.

2. Official school leaving age: If the school leaving age is low, the share of the labor force will be high.

3. Retirement age: The age of leaving public employment will determine the labor force. The older the age, the greater the supply of labor and vice versa.

4. Seeking higher education: Many people in their search for higher education go beyond the official age of entry into the workforce.

5. Population age structure: The population structure of a country is a significant determinant of the size of the labor force. The lower the number of dependents, the greater the increase in labor supply in a country with a larger number of people between 18 and 65 years of age.

6. Role of women in society: In some societies, women are generally unable to access paid employment due to religious beliefs, social and cultural factors and this affects the size of the labor force.

7. Number of working hours and working days: The number of working hours per day and the number of working days in a week of the year also help determine the labor supply.

8. The number of disabled: when the number of disabled people is high, especially within the active population, the supply of labor will be low.

9. The number of people who are not willing to work: There are a certain number of people without disabilities who are also between 18 and 65 years of age but who are not willing to work. If your population is high, it will affect the size of the labor supply.

10. Migration: The rate of migration can also affect the size of the workforce. If the rate at which the working population leaves a country is greater than the rate at which people enter, there will be a reduction in the supply of labor.

11. Union activities: Union activities can also affect the supply of labor. For example, when a long period of training in a certain trade is imposed, this can discourage people from taking up that trade or profession, leading to a reduction in labor supply.

12. Government Policies: Certain government policies may affect the supply of labor. For example, specific laws are made to exclude children and women from work in ministries. This can reduce the supply of labor in that area or field.

In summary, if a city has an average of 100 deliveries in a week and 30 surgical cases in 2 months, what do you think the supply and demand would be like if 50 gynecologists and 50 surgeons were sent to this city? Labor supply and demand are very essential in our daily lives.