When we actually talk of the supply of labour, what we are actually referring to is the supply of labour service or labour effort.
This supply is affected by a number of factors, prominent among which are the size and composition of population and the number of workers that are not only available for work but are also able and willing to work at the on-goinh wage rates.
It is therefore necessary to distinguish between potential labour force and effective labour force.
The former includes all the people which are living in the country at a long in time, irrespective of their age, there sex, their geographical location, and also their willingness and ability to work, while the latter takes into account only those who are both able and willing to work at given wage rates.
Other factors which are affecting labour supply include level of development in the economy, number of hours worked per week and per year, the state of working conditions in the respective occupations, social organisations and people attitude to work trade unions activities and the age of retirement.
All things being equal, it is expected that there will be a relatively high supply of labour in a highly monetised and developed economy, where both men and women compete in the labour market and where barriers imposed by age are not restrictive.
Efficiency or productivity of labour can be measured as a ratio between total output and the number of days used in producing the output. Generally, greater the output per day, the higher the efficiency or productivity of labour.
Another way of measuring labour efficiency is to compare the marginal value product of labour with the wage rate. Labour is said to be used efficiently when the marginal vue product is equal to the existing wage rate.
I will be talking about the second part in my next post.
You just make the word demand and supply so easy. his is wonderful. Nice post
Yea thank you for stopping by
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Hello friend, as far as I can see there are many factors, nowadays the world economy is not going well, and I suppose that the job offers are not either, it is sad because we have an overpopulation and unemployment abounds especially in underdeveloped countries. Greetings!
Well said friend. Thank you for your valuable comments
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Thank you for your support
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Hello @mandate
The number of aspects that we can deduce from something so apparently simple.
Labor is related to social, economic, technological, and can be affected by many things.
You have said it all. Labour can be affected by many things. Thanks for your valuable comments
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It seems that many factors come into play, although the size of the population and the dynamics of the economy would be the most decisive
Yea. And those factors really need to be considered. Thank your for stopping by
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Truly an extraordinary content thank you for sharing such an important article with all of us. Successes.
Good article, most of the communist countries their workers are basically slaves who have to accept jobs with lower wages to survive this makes you find highly skilled labor at low prices destroying the "work efficiency"