Labor is all kinds of human effort put in or take advantage of production. In other words, it refers to man’s mental and physical exertions generated in the production process. Market on the other hand, the point or place or any means of communication where buyers and sellers can communicate with one another, to exchange goods and services at prices determined by market forces. The labor market is defined as the market where buyers and sellers of labor are in close contact where wages and other conditions of service are determined and agreed upon. Labor is a factor of production is generally bought and sold in the market.
force is the total number of persons available to provide labor for the production of economic goods and services. In other words, it is the total number of people of working age in the country who are able and willing to work according to the law. It is activated or labor, and it consists of all persons who have jobs and those who are looking for jobs in the labor market. They are usually found in the age bracket of 18 to 65 years. Working population vary from one country to another. Being a member of the workforce, will be of working age (18-65 years), being able-bodied, ie but not disabled. Mentally or physically, and must be willing to work. Individuals who are not members of the labor market
• School-age children (0-17 years)
• Elderly (over 65 years)
• disabled (physically or mentally)
• Persons even if they are able-bodied, but are unwilling to work.
demand for labor
Demand for labor is the total number of employees, employers are willing and ready to hire or rent at a certain time and a certain salary. Demand for labor is a derived demand for labor is not required for its own sake, but for what it can help produce. Factors affecting labor demand are:
1. Market size: The size of the market for goods and services produced determines the demand for labor. The larger the market, ie greater production of goods and services, the greater the demand for labor to produce the necessary goods and services.
2. Number of industries: the higher the number of sectors producing necessary goods and services, the greater the demand for labor
3. Give a percentage of the workforce, demand for labor by employers depends on the price of labor is offered for sale (workers). If labor is willing to accept low wages, labor demand will be high.
4. Candidates other factors: If other factors of production such as land and properties are available in large quantities to produce the necessary goods and services, there will be a corresponding high demand for labor.
5. Efficiency of labor: If the efficiency of labor is high, it would be a strong tendency for employers to engage more workers, and vice versa.
6. Demand for goods and services, demand for goods and services in the country can stimulate an increase in the demand for labor.
7. Nature Industries: Nature or industries- whether it is capital-intensive or labor-intensive will determine labor demand. The Labor-intensive industries will lead to high demand for labor.
8. Recruitment Agency: The state employment determines the demand for labor. If the economy has reached full employment, there will be little or no demand for labor if it is under-employment, there will be a demand for more work.
Availability of labor is the total number of people of working age available for employment at a certain time and a certain salary. In other words, the supply of labor can be referred to as service labor in the labor market. Factors that influence the supply of labor or the size of the workforce are as follows:
1. Size inhabitants of the land: the larger the population, the greater the number of labor to be present.
2. Official school leaving age: If the school leaving age is a low percentage of the labor force will be high.
3. Retirement Age exits public office will determine the labor force. The older the age, the more supply of labor and vice versa.
4. Pursue Higher Education: Many people in their quest for higher education go beyond the official entry age in the workforce.
5. The nation’s age: The structure of the population of the country is a significant determinant of the size of the labor force. The lower the dependent people, the greater the supply of labor will increase in the country with more number of people aged between 18 and 65 years.
6. The role of women in society: In some communities, women are generally prevented to participate in paid work due to religious, social and cultural factors, and this affects the size of the labor force.
7. The number of hours and days worked, number of hours per day and the number of working days in the week of the year also helps to determine the supply of labor.
8. The number of disabled: When the number of disabled people in high especially in the working population, the supply of labor will be low.
9. The number of people will not work: There are a certain number of able-bodied people who are also the age group between 18 and 65 years but are unwilling to work. If their 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 labor force. If the rate at which the working population leaves the country is higher than the rate at which people come, it will lead to a decrease in labor supply.
11. Activities of trade unions Activities union may also affect the supply of labor. For example, when a long training is given to certain transactions, this may discourage people from engaging in such trade or profession which leads to a decrease in labor supply.
12. Government policies: Certain government policies can affect labor supply. For example, there are special laws made to exclude children and women to work in the ministries. This can reduce the labor supply of current or field.
In short, if the city has an average of 100 children a week of birth and 30 surgical cases in 2 months, how do you think the demand and supply would be 50 Gynecologists and 50 surgeons sending this city? Supply and demand of labor are both very important in our daily lives.