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 quick and sensual effort of people in production. The prod mart is a factor market where the regard and supply of working class act to determine the lock valuate and the allocation of bear on party resources in the frugality. The essential for tire out is derived defecate the solicit for the goods and services that dig up is used to produce. The demand for wear upon is influenced by the level of scotch activity, the productivity of prod and relative cost of grok compargond to capital. supply of restriction refers to coincidence 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(prenominal) macroeconomic and microeconomic factors. Macroeconomics refer to conditions in the whole econo my affecting the general labour market. microeconomic factors include item 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 government issue of factors that are industry or firm specific, these include the nature and size of the industry, the pattern of consumer demand and output, the wage rate and conditions of troth offered, the productivity of labour, the rate of capital/labour substitution and the rate of structural change and entrepreneurial expectations. Large l abour intense industries such as TCFs and s! ervice are ordinarily adult users of labour. Traditionally industries like mining and building were labour intensifier jobs but in developed countries these industries have rancid to macrocosm capital intensive industries. The nature of an industrys output overly influences the character of labour demanded; for e.g. professional and unskilled... If you want to get a total essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay