Rest of micro Flashcards
(9 cards)
Factors that influence supply of labour
Population size
Age distribution
Migration
Participation rate
School leaving age
Skills and qualifications
Mobility of labour
Population size
A larger population means more people are potentially available for work
E.g. India’s growing population has led to increase in supply of labour
Age distribution
More developed countries, such as Japan, have an ageing population that reduces labour supply
Less developed countries often have a more youthful population, increasing supply of labour
Migration
Policies that increase the net migration rate increase the supply of labour to certain industries
E.g. In 2022, 36% of Singapore’s labour force were migrants
Participation age
This is the number of people willing to work within the working age group. This can change depending on
Amount of female participation
Changes to retirement age
School leaving age
School-leaving age
A rise in the school leaving age can lead to a reduction in the supply of labour and vice versa
E.g. There has been a decline in school leavers in South Korea, which has led to concern for future labour supply
Skills and qualification
The level of skills and qualifications generally undertaken can increase the supply of available workers for specific industries
E.g. The more medical graduates, the greater the labour supply of nurses and doctors
However, if school leaving age tends to be very low, workers are likely to be more unskilled
Mobility of labour
Geographical mobility of labour is the ease with which workers can move from one geographical area to another in order to secure employment
It can depend on family ties, being able to secure/afford accommodation in an unknown location, cost of moving or quality of transport links
Occupational mobility of labour is the ability of a worker to change occupations when they lose a job
If their skill base is transferable between different occupations, then their occupational mobility is high
