Labor

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Labor is described as any type of work. Organized labor is depicted as employees represented by a union. [1]

Contents

[edit] Demand for labor

Demand for labor is a concept, which identifies the labor demand quantum that a company or an economy is willing to employ at any given point in time. This demand may not necessarily meet long term requirements. The demand for labor is dependent upon the potential workers' real wage, whether the companies concerned are willing to pay for this labor and the number of labor workers who have agreed to toil at that market wage.[2]

[edit] Blue collar worker

Wage earners whose chores require manual labor. Blue collar workers generally wear apparels suited for the rough nature of their work.[3]

[edit] Labor intensive

Labor intensive industries are those that demand substantial amount of labor in order to manufacture goods or provide services. Labor intensity is appraised by calculating the proportion of quantum of capital to provide services or goods. Higher labor costs translate into greater labor intensive workplaces. Common examples of labor intensive workplaces include agriculture, mining and hotels. Labor costs are regarded as variable costs as capital costs are considered fixed. The advantage of labor intensive industries is that employers can pare down the number of employees during economic downturns and thus save on costs when business is down. [4]

[edit] Human capital

It is the assessment of the skill set of an employee. Human capital is the primary unit of labor measure where all labor is believed to be equal. The human capital concept recognizes the fact that labor force is unequal and employee quality can be improved by investing in them. The education and experience of employees have economic value for employers. A more educated workforce translates into a thriving economy.[5]

[edit] Productivity

It is the economic measure of output per unit of input. Inputs include capital and labor, while output is appraised by revenues and other GDP parts like business inventories. Greater productivity involves an optimal use of scarce resources like labor and capital. Maximizing productivity is one of the principal concerns of modern businesses. [6]

[edit] See also

[edit] References

  1. ↑ investorwords.com [1]
  2. ↑ investopedia.com [2]
  3. ↑ answers.com [3]
  4. ↑ investopedia.com [4]
  5. ↑ investopedia.com [5]
  6. ↑ investopedia.com [6]

[edit] External links

[edit] Further readings

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