Labour Market

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Welcome to class! 

In today’s class, we will be talking about the labour market. Enjoy the class!

Labour Market

Labour Market- is the market in which buyers and sellers of labour are in close contact during which the wages and other conditions of employment are negotiated and determined. It is an integral part of factor market where factors of production are bought and sold.

The concept of the labour force

This is also referred to as the working population.  It is defined as the total number of people (male and female) who fall within the age bracket who are allowed by law, custom or other factors to work and who make themselves available for work. That is, it is the total number of people available to supply the needed labour for the production of economic goods and services.

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

Factors affecting the size of the labour force

1. The size of a country’s total population
2. The school entry and leaving ages
3. The retirement age
4. The number of disabled people
5. The number of women that are not allowed to work for payment apart from housework
6. The number of working hours
7. The rate of brain drain in a country
8. The ratio of emigration to immigration in a country
9. The willingness of workers to work
10. Age distribution that determines the working age of people in a country

Evaluation

1. What is the labour force?
2. List five factors affecting the size of a country labour force

Mobility of labour

Mobility of labour is the degree of movement of labour from one geographical location to another or from one occupation to another occupation. Mobility of labour can be divided into two:

1. Geographical mobility of labour
2. Occupational mobility of labour

Geographical mobility of labour:

It is the movement of labour from one geographical area to another.

Causes/factors of geographical mobility of labour

By causes of geographical mobility of labour, we mean the reasons why people (labour) move from one place to another, and the reasons why people move to a new place are:

1. To enjoy the availability of social amenities present in the new place
2. To seek for employment opportunities
3. Transfer of workers to a new place
4. for education and training
5. To engage in economic activities
6. The policy of the government e.g. favourable immigration policy
7. Affordable cost of transportation
8. Absence of political upheaval in a new place

Problems of geographical mobility of labour

By problems of geographical mobility of labour, we mean factors which prevent or make people hesitate to move to a new place, and which are:

1. Bond of affection attached to a particular location
2. Fear of religious, tribal or racial discrimination
3. The difference in climatic condition
4. Difficulty in language
5. Lack of adequate education
6. Conservative attitude of illiterates
7. Strong economic consideration
8. Presence of political hostility in a new place

Evaluation

1. Define the mobility of labour
2. Explain the following;

• lateral mobility
• vertical mobility

Occupational mobility of labour:

It is the movement of labour from one occupation to another in the same town or different town. This movement may be relatively easy if it involves just a transfer of worker from one factory to another without any change in the duty performed by this worker, in which case, occupational mobility of labour is said to be Lateral. On the other hands, it may be difficult if not impossible when it involves a complete change in which occupational mobility of labour is said to be Vertical.

Causes/factors of occupational mobility of labour

By causes of occupational mobility of labour, we mean reasons why people change from one occupation to another occupation, and the reasons are:

1. Trade depression and trade boom
2. The policy of the government
3. Monotony of work
4. Cost and length of training
5. Better condition of service
6. Attitude of employers
7. Attractive salaries and other juicy fringe benefits

Problems of occupational mobility of labour

By problems of occupational mobility of labour, we mean those factors which prevent labour from leaving one occupation for another occupation, and these factors are:

1. The geographical location of the new job
2. Salary differences
3. Ignorance on the part of workers
4. Benefits from pension right
5. Legal bond or agreement with the employer
6. High future prospect
7. Lack of adequate education

Evaluation

1. Differentiate between geographical and occupational mobility of labour
2. Itemize five problems of the mobility of labour

Reading assignment

1. Amplified and Simplified Economics for SSS by Femi Longe pages 119-124
2. Comprehensive Economics for SSS By J.U. Anyaele chapter 11 pages 91 – 92
3. New Approach Economics By K.U. Nnadi and A.B. Falodun chapter 7 pages 68 – 70

General evaluation

1. Define the term Limited Liability
2. Explain any four problems of a statutory corporation
3. Outline any five internal economies of scale enjoyed by a large firm.
4. Highlight four features of a table
5. Explain the term labour force
6. What do you understand by the mobility of labour?

 

In our next class, we will be talking about Population.  We hope you enjoyed the class.

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