What are the Factors affecting the Demand for Labour? (4)
Demand for the product
Availability of substitutes
Productivity of labour
Other employmentcosts
How does demand for a product affect the demand for Labour?
because demand for labour is derived demand
derived demand
demand that arises because there is demand for anothergood
How does the availability of substitutes affect the demand for labour?
The demand for labour can be affected by cost and availability of substitutes for labour
How does productivity of Labour affect the demand for labour?
If every worker is able to produce more output, the demand for labour would increase, because production becomes more profitable and efficient
How do other employment costs affect the demand for labour?
The other costs affect a cost to the employment
What are the factors affecting the supply of Labour? (8)
Populationsize
Migration
Agedistributionofthepopulation
Retirement age
Schoolleaving age
Femaleparticipation
Skills and Qualifications
LabourMobility
How does population affect the supply of labour?
More population -> more supply of labour
How does migration affect the supply of Labour?
More people -> More supply of labour
How does age distribution of the population affect the population?
An 'aging population' means that the number of people over the age of 65 is increasing in the population, meaning that the dependency ratio is also increasing which can place a financialburden on the population
How does the retirement age affect the supply of labour?
Many countries are increasing the retirement age, meaning the supply of labour increases
How does school leaving age affect the supply of labour?
If a country increasesschoolleaving age, this would decrease the supply of labour
How does female participation affect the supply of Labour?
more women have chosen to enter the workforce due to cultural, societal and feministlegislativechange, increasing the supply of labour
How do skills and qualifications affect the supply of labour?
supply of labourincreases if people are more qualified
How does labour mobility affect the supply of labour?(2)
Geographically mobile: workers can move to a different region to find work, increasing supply of labour
occupationally mobile: workers can switch job types easily, increasing supply of labour
what is the wage rate determined by?
the interaction of the demand and supply of labour