PrepareLabour Market · 1 min read
The Labour Market & Supply of Labour
Labour Market
The labour market is a place where people looking for work meet with people who have jobs to give so they can agree on how the work will be done.
The labour market is the market where prospective employees meet to negotiate the terms of their employment.
It is just like a regular market, but instead of buying food, people are talking about jobs and salaries.
Supply of Labour
This means the total number of people in a country who are ready and fit to work at a specific time.
Supply of Labour is the number of people that are able and willing to work in a country at a particular time. This is also known as the Labour force.
It refers to every person who is old enough and wants to work, whether they have a job yet or not.
Factors Affecting Labour Force Size
Many things can make the number of workers in a country increase or decrease.
Size of the country’s population.
Age distribution of the population.
Sex distribution of the population (if women are exempted).
Length of education/training.
Number of working hours/days per week.
Key points
- •The labour market is where prospective employees and employers negotiate terms of employment.
- •The supply of labour, also known as the labour force, refers to the number of people able and willing to work in a country at a specific time.
- •Factors influencing the size of the labour force include population size and age distribution.
- •Sex distribution, length of education/training, and the number of working hours/days per week also affect labour force size.