Labour Markets Flashcards
What is labour?
Individuals who are willing and able to work
Who demands labour?
Businesses
Who supplies labour?
The people who are willing and able to work.
What is the labour market?
Where workers sell their labour and employers buy the labour. It consists of households supply of labour and firms demand for labour.
What happens when the supply of labour is greater than the supply for labour is greater than the demand?
Unemployment
What does the term derived demand mean?
Demand for labour is directly linked to the demand for a good or service.
What factors influence the supply for labour?
Education and training, size of the working population, non-monetary factors, barriers to entry, wage rates, wages on offer in other industries.
What factors influence the demand for labour?
The state of the economy, increasing demand, wage rates, profitability of firms and productivity of labour.
