Labor force is the total number of persons available to supply the labor for the production of economic goods and services. In other words, it is the total number of people of working age in a country who are able and willing by law to work. It is the active or working population and it comprises all persons who have jobs and those who are seeking for jobs in the labor market. They are normally found between the age bracket of 18 to 65 years. Working population varies from one country to another. To be a member of the labor force, one must be of working age (18-65 years), be able-bodied, ie, not handicapped either. Mentally or physically, and must be willing to work. Persons that are not members of the labor force include:
• Children of school age (0-17 years)
• Elderly (above 65 years)
• The handicapped (either physically or mental)
• Persons even though they are able-bodied but are unwilling to work.
Demand for Labor
Demand for labor is the total number of workers employers are willing and ready to employ or hire at a particular time and at a given wage rate. The demand for labor is a derived demand, because labor is not required for its own sake but for what it can help produce. Factors affecting the demand of labor are:
1. The size of market: The size of the market for goods and services produced determines the demand for labor. The larger the market, ie, the greater the production of goods and services, the higher the demand for labor to produce the required goods and services. 2. Number of industries: The higher the number of industries that produces the needed goods and services, the higher the demand for labor 3. Wage rate of price of labor: The demand for labor by employers depends on the price at which labor is offered for sale (by workers). If labor is willing to take a low wage rate, the demand for labor will be high. 4. Availability of other factors of production: If other factors of production such as land and capital...
Please join StudyMode to read the full document