Labour Market

Question 1

What are the factors affecting demand for labour?

Answer 1

-Wage rate- The amount of money paid to workers for their services over a period of time.

-Demand for the product (derived demand)

-Productivity of workforce

-Availability of substitutes

-Other employment costs- NIC’s, pensions, sick pay, costs of recruitment and selection.

-Qualification and training

Question 2

What are the factors affecting supply of labour?

Answer 2

Population size
Net migration
Age distribution of population
Retirement age
School leaving age
Female participation
Skills and Qualification
Labour mobility

Question 3

What is labour mobility?

Answer 3

Refers to the ability of workers to move geographically and occupationally between different jobs.

Question 4

What are the two types of labour mobility?

Answer 4

-Geographical mobility

-Occupational mobility

Question 5

What is geographical mobility?

Answer 5

The ability of workers to move to different locations for work.

Question 6

What is occupational mobility?

Answer 6

The ability of workers to move from one occupation to another due to having wide ranging skillset.

Question 7

What is human capital?

Answer 7

Human capital- The productive potential of an individual or group of individuals in an economy.
This is dictated by skills, experience and education.