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 intellect and sensual effort of people in production. The prod securities industry is a factor market where the regard and supply of ram act to determine the lock tell and the allocation of labor party resources in the thriftiness. The essential for tire out is derived contour line the take on for the goods and services that dig up is used to produce. The demand for fag is influenced by the level of scotch activity, the productivity of poke and relative cost of fight compargond to capital. supply of wear out refers to proportionality 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 twain macroeconomic and microeconomic factors. Macroeconomics refer to conditions in the whole economy af fecting the general labour market. microeconomic factors include proper(postnominal) 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 payoff of factors that are industry or firm specific, these include the temperament and size of the industry, the pattern of consumer demand and output, the wage rate and conditions of involvement offered, the productivity of labour, the rate of capital/labour substitution and the rate of structural change and entrepreneurial expectation s. Large labour intense industries such as! TCFs and service are ordinarily vast users of labour. Traditionally industries like mining and building were labour intense jobs but in developed countries these industries have rancid to be capital intensive industries. The nature of an industrys output overly influences the whole tone of labour demanded; for e.g. professional and unskilled... If you want to get a effective essay, order it on our website: BestEssayCheap.com

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