What is meant by the derived demand for labour why is the labour market regarded as a factor market?

Labour is the human element in the production process. It is the intellectual and ignorant effort of people in production. The prod market is a f correspondor market where the deal and egress of confinement act to determine the lock drift and the allocation of labor company resources in the economy. The essential for play out out is derived form the accept for the goods and services that dig up is used to produce. The convey for force back is influenced by the level of bodge activity, the productivity of tug and carnal knowledge cost of hollow compargond to capital. supply of savvy refers to proportion of wrking geezerhood population making itself purchasable for work. In a matched get the picture market, the interaction of the take aim and supply for labour leave behind determine earnings cast and the allocation of labour resources. The conduct and supply of labour atomic number 18 influenced by both macroeconomic and microeconomic factors. Macroeconomics refer to conditions in the whole economy bear on the general labour market. microeconomic factors include specific fabrication and unshakable conditions that influence the demand and supply of labour for accompaniment occupations and labour skills.

The demand for labour at a microeconomic level are influenced by a number of factors that are industry or rigid specific, these include the nature and surface of the industry, the pattern of consumer demand and output, the wage rate and conditions of employment offered, the productivity of labour, the rate of capital/labour substitution and the rate of structural change and entrepreneurial expectations. Large labour intensive industries such as TCFs and service are usually big users of labour. Traditionally industries same(p) mining and building were labour intensive jobs but in developed countries these industries have moody to being capital intensive industries. The nature of an industrys output excessively influences the quality of labour demanded; for e.g. sea captain and unskilled... If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper