Labour Market – SS1 Economics Lesson Note (Second Term)

Behavioural objectives

By the end of the lesson, students should be able to:

• define the labour force;
• state the factors that affect the supply of labour;
• explain the meaning of mobility of labour;
• distinguish between occupational, geographical and industrial mobility of labour;
• list the causes of mobility of labour.

What is 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, together with those who are within the working age, capable and willing to work by law, but have no work to do at a particular period.

The labour force is the working population. It comprises all persons who have jobs and all 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.

What factors affect the supply of labour?

1. Size of the population (working population): The higher the size of the population, the higher the working population, and vice versa.
2. Official school leaving age: If the school leaving age is low, the proportion of the labour force will be high, and vice versa.
3. 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.
4. Level of remuneration or wage rate: The level of salaries, wages and other remuneration paid to workers determines the number of people who may be willing to work.
5. Migration: Immigration will increase the supply of labour and emigration will decrease it.

What is mobility of labour?

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

What are the types of labour mobility?

1. Occupational mobility of labour: 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: the ease with which workers can move from one geographical location to another, for example from Port Harcourt to Jos.
3. Industrial mobility of labour: the ease with which workers can move within the same industry or from one industry to another.

Aspects of industrial mobility of labour

Industrial mobility of labour has two aspects: vertical and horizontal.

• Vertical mobility usually takes the form of promotion within the same industry. For example, the Vice-Principal of a school could be promoted to Principal.
• Horizontal or lateral mobility 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.

What are the causes of mobility of labour?

The following factors influence the mobility of labour:

1. Unfavourable 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

Evaluation

1. Define the labour force.
2. State four factors that affect the supply of labour.
3. What is mobility of labour?
4. Give one example each of occupational, geographical and industrial mobility of labour.
5. List five causes of mobility of labour.

Assignment

1. What factors do you consider likely to affect the efficiency of labour in your country?
2. Distinguish between occupational and geographical mobility of labour.
3. What do you understand by the term efficiency of labour?