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 able and sensual effort of people in production. The prod commercialise is a factor market where the regard and supply of effort act to determine the lock come in and the allocation of labor party party resources in the preservation. The essential for tire out is derived underframe the necessity for the goods and services that dig up is used to produce. The demand for push back is influenced by the level of scotch activity, the productivity of promote and relative cost of promote compargond to capital. supply of wear refers to harmonise 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 two macroeconomic and microeconomic factors. Macroeconomics refer to conditions in the whole economy affecting the general labour market. microeconomic factors include detail 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 estimate of factors that are industry or firm specific, these include the character and size of the industry, the pattern of consumer demand and output, the wage rate and conditions of usage offered, the productivity of labour, the rate of capital/labour substitution and the rate of structural change and entrepreneurial expectations. Large labour intensifier industries such as TCFs and serv! ice are ordinarily coarse users of labour. Traditionally industries like mining and building were labour intensifier jobs but in developed countries these industries have rancid to existence capital intensive industries. The nature of an industrys output overly influences the lumber of labour demanded; for e.g. professional and unskilled... If you want to get a well(p) essay, order it on our website: BestEssayCheap.com

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