Labour market

Labour market

The interaction between employers demanding labour and workers supplying labour to determine wages and employment levels.

Derived demand

The demand for labour that depends on the demand for the goods and services it produces.

Demand for labour

The number of workers firms are willing and able to employ at different wage rates.

Output of the firm

The quantity of goods or services a firm produces, influencing its need for workers.

Productivity of labour

The amount of output produced per worker in a given time period.

Marginal productivity of labour

The additional output produced by employing one more worker.

Cost of other inputs

The prices of other factors of production (e.g. capital) that affect demand for labour.

Substitute inputs

Resources that can replace labour, such as machinery or technology.

Complementary inputs

Resources used together with labour, increasing demand for workers when used more.

Supply of labour

The number of workers willing and able to work at different wage rates.

Remuneration

The total rewards received from work, including wages and non-wage benefits.

Working conditions

The physical and non-physical environment in which employees work.

Human capital

The skills, education, training and experience possessed by workers.

Occupational mobility

The ability of workers to move between different jobs or occupations.

Geographic mobility

The ability of workers to move between different locations for work.

Participation rate

The percentage of the working-age population either employed or actively seeking work.

Workforce

The total number of people employed and unemployed in an economy.

Employed

People aged 15 and over who are working for pay, profit or unpaid in a family business.

Unemployed

People aged 15 and over who are not working but actively seeking and available for work.

Unemployment rate

The percentage of the labour force that is unemployed.

Underemployment

Workers who are employed but want and are available for more hours of work.

Full-time work

Employment involving standard full-time hours, usually around 35–40 hours per week.

Part-time work

Employment involving fewer hours than full-time work.

Casualisation

The increase in casual employment with fewer leave entitlements and less job security.

Outsourcing

The practice of contracting work to external businesses or overseas firms.

Contractor

A self-employed individual hired to provide services under a contract.

Sub-contracting

The practice of a contractor hiring another business or person to complete part of a job.

Income from work

Earnings received by individuals in return for labour services.

Wage rate

The price paid for labour per unit of time (e.g. per hour).

Wage outcomes

The level of pay received by different groups of workers.

Income distribution

The way income is shared among individuals or groups in an economy.

Occupational groups

Categories of jobs classified by skill level or industry.

Gender pay gap

The difference in average earnings between men and women.

Non-wage outcomes

Benefits from work other than pay, such as job satisfaction, flexibility or leave entitlements.

Equitable distribution of income

A fairer sharing of income across society.

Arguments for income equality

Reasons supporting fairer income distribution, such as social cohesion and reduced poverty.

Arguments against income equality

Reasons supporting income differences, such as incentives for effort and productivity.

Union

An organisation that represents workers’ interests in wages and working conditions.

Employer association

An organisation that represents employers in negotiations and industrial matters.

Enterprise agreement

A negotiated agreement between employers and employees about pay and conditions.

Modern award

A legally binding document outlining minimum wages and conditions for specific industries or occupations.

Fair Work Commission

The independent government body that regulates Australia’s workplace relations system.

Minimum wage

The lowest legal wage employers can pay workers.

Industrial relations framework

The system of laws, institutions and processes that regulate employment and workplace relations in Australia.

Australian workforce characteristics

Features such as ageing population, higher female participation, increased service sector employment and cultural diversity.