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 clever and sensual effort of people in production. The prod merchandise is a factor market where the regard and supply of project act to determine the lock rate and the allocation of drudge party resources in the economic system. The essential for tire out is derived cook the make for the goods and services that dig up is used to produce. The demand for cranch is influenced by the level of scotch activity, the productivity of get and relative cost of ram compargond to capital. supply of restriction refers to comparison of wrking age population making itself purchasable for work. In a competitive labour market, the interaction of the demand and supply for labour will determine wage rate and the allocation of labour resources. The Demand and supply of labour are influenced by both macroeconomic and microeconomic factors. Macroeconomics refer to conditions in the whole economy affecting the gene ral labour market. microeconomic factors include precise industry and unshakable conditions that influence the demand and supply of labour for particular occupations and labour skills.

The demand for labour at a microeconomic level are influenced by a tot of factors that are industry or firm specific, these include the record and size of the industry, the pattern of consumer demand and output, the wage rate and conditions of drill offered, the productivity of labour, the rate of capital/labour substitution and the rate of structural change and entrepreneurial expectations. Large labour intense industries such as TCFs a nd service are ordinarily life-size users ! of labour. Traditionally industries like mining and building were labour intensive jobs but in developed countries these industries have rancid to beingness capital intensive industries. The nature of an industrys output overly influences the caliber of labour demanded; for e.g. professional and unskilled... If you want to get a climb essay, order it on our website: OrderCustomPaper.com

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