demand and efficiency of labour

demand and efficiency of labour.

demand and efficiency of labour.

The demand for labour refers to the numbers of workers or employers willing and able to employ at a particular time. If influenced by the

  • The demand for jobs and services in the market
  • The price of labour
  • The method of production used i.e. weather labour intensive or capital intensive
  • The economic situation of the country.

The Efficiency of labour

It refers to the ability of a worker to achieve a greater output in a short time without a fall in the quality of work done. It refers to the maximum average output per worker.

Factors that influence the efficiency of labour

  • Educational training: the skills required in modern production plant can only be acquired through better education and trained well, educated and trained workers will be more efficient then an untrained one such education and training can be acquired through institutions. when provide high skills and knowledge such as vocational institution technical colleges, universities etc.
  • Working conditions: the conditions under which work is done do influence the efficiency of labour. Better working conditions like ventilated rooms, less polluted environment, security etc. will make labour more efficient.
  • Motivation: financial and non-financial bonus like free transport, medical care housing make workers to be satisfied with their jobs and tend to produce more output.
  • the efficiency and other factors of production: the efficiency of labour largely depend on the efficiency of other factors of production such as capital and land. Labour will be more efficient when it modern equipment like machines computers and above all when there is effective organization.
  • The provision of welfare services: the provision of services which contribute to the well beings of workers like canteens, recreational centers, medical facilities, housing etc. tend to make workers more productions and efficient.
  • Job satisfaction: when a workers is carrying out a piece of job that him or her happy. It is more likely that makes he/she will be more efficient. This to an extend explains why in most countries some people still maintain their jobs despite the law wages paid to them and prevailing post working conditions.

Labour as a factor of production

factors of production
land, labour, capital and entrepreneurship

Labour as a factor of production

demand and efficiency of labour

Mobility of labour

division of labour



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