Theory question 104
Labour Market(a) Distinguish between labour force and efficiency of labour.
(b) Describe five factors which determine the size of the labour force in a country.
Show the model answer
Model answer
(a) Labour force is the number of people of working age who are employed or actively seeking work; efficiency of labour is the ability of workers to produce more output, of good quality, in a given time.
(b) Any five: total population size; age structure of the population; school-leaving age and length of education; retirement age; participation of women; attitudes to work and leisure/wage rates; health of the population; migration; social and religious customs.
Explanation
Labour force is about numbers; efficiency is about output per worker.