Topic 4 - Economics

labour market

individuals seeking employment interact with employers who want to obtain the most appropriate labour skills for their production process

aggregate demand

the total demand for goods and services within the economy

factors affecting demand for labour

output of the firm
productivity of labour
cost of other input

productivity of labour

output per unit of labour per unit of time

factors affecting supply of labour

pay/remuneration

working conditions

skills/experience/education/training level

mobility

occupational mobility

the ability of labour to move between different occupations in response to wage differentials and employment opportunities

geographical mobility

the ability of labour to move between different locations in response to improved wage differentials and employment opportunities

labour participation rate

proportion of the population that decides to supply its labour

working age population

the number of people in an economy who are at least 15

labour force

consists of all the employed and unemployed people in the country at any given time

participation rate is influenced by

state of the economy

trends in the ageing of the population

changing social attitudes

increased school retention rates