Labour Market SS1 Economics Lesson Note

THE CONCEPT OF THE LABOUR FORCE

The labour force can be defined as the total number of people of working age in a country who are gainfully employed and those who fall within the age bracket, capable and willing to work by law but have no work to do in a country at a particular period.

The labour force is the working population and it comprises all persons who have jobs and who are seeking jobs in the labour market.  They are between the ages of 18 years and 60 years.  The working population varies from one country to another.

FACTORS AFFECTING THE SUPPLY OF LABOUR OR SIZE OF LABOUR

1. Force/working population 
2. The size of the population:  The higher the size of the population, the higher the working population and vice versa.
3. Official School Leaving Age:  If the school leaving age is low, the proportion of the labour force will be high and vice versa
4. Official Age of Retirement: If the age of retirement is raised the supply of labour will tend to increase because more people will be available for work
5. Level of Remuneration/Wage Rate:  The extent of salaries, wages and other remunerations paid to the workers determines the number of people who may be willing to work.
6. Migration:  Immigration will increase and emigration will decrease the supply of labour.

MOBILITY OF LABOUR

The mobility of labour refers to the ease with which workers or labour can move from one occupation to another or from one geographical area to another.

TYPES OF LABOUR MOBILITY

1. Occupational Mobility of Labour:  This refers to the ease with which workers can move from one job to another.  For instance, a messenger can easily change to become a cleaner or a farmer.

2. Geographical Mobility of Labour:  This refers to the ease with which workers can move from one geographical location to another. e.g Port Harcourt to Jos. 

3. Industrial Mobility of Labour:  This refers to the ease with which workers can move within the same industry or from one industry to another.

Industrial mobility of labour has two aspects; vertical industrial mobility of labour and horizontal industrial mobility of labour.

Vertical mobility of labour usually takes the form of promotion with the same. For example, the Vice-Principal of a school could be promoted to Principal.

Horizontal or lateral mobility of labour takes place when a worker moves from one industry to another but still performs the same task and occupies the same rank. For example, an Accountant can leave the Star Beer factory at Aba for the textile mills. 

CAUSES OF MOBILITY OF LABOUR OR FACTORS INFLUENCING MOBILITY OF LABOUR

1. Unfavorable working conditions
2. Marriage
3. Irregular payment of salaries
4. Promotion
5. Bad management
6. Climate
7. Lack of job security
8. Lack of social amenities
9. Accommodation problem
10. Political instability
11. Personal reasons.

ASSIGNMENT 

1. What factors do you consider likely to affect the efficiency of labour in your country?

2. Distinguish between occupational and geographical labour.

3. What do you understand by the term efficiency of labour?