Supply of Labour – its meaning and factors affecting the size of the labour force.
Supply of labour refers to the total number of men offered for employment over a period of time and at a given wage rate.
It is also known as supply of effort.
Factors Affecting the Size of the Labour Force and Supply of Labour.
1. The Size Of A Countrys Total Population: if the size of a countrys total population is high, the possibility is that the size of its labour force will be high and vice versa.
2. Pattern of Death: If there is discriminating death rate according to ages, and that of the working population is high, may be because of the nature of the work they do, the labour force will reduce and vice versa.
3. Immigration: People from other countries who have come to settle in a particular country called immigrants help to increase the labour force of the country in which they settled.
4. Emigration: People from a particular country who move to settle in other countries known as emigrants contribute immensely in reducing the size of the labour force of the native countries which they deserted.
5. The School Entry And Leaving Ages: The lower the two ages, other things being equal, the higher the labour force of a country and vice versa.
6. The Official Retirement Age: If the retirement age is raised, the size of labour force will be high and vice versa.
7.The Number Of Disabled: Since the disabled or incapacitated people are not included among the labour force even if their ages fall under the working population, the higher their population, the lower the size of the labour force and vice versa, ceteris paribus.
8. Whether Women Are Included Or Not: If women are included ^mong the labour force, the size of labour force will be high and vice versa.
9. The Population Of Those That Retire Before The Retirement Age: If the number of those that retire before the official retirement age is high, the size of the labour force will be seriously affected, all other variables remaining constant.
10. The Number Of Those Who Continue Studying Beyond The School-Leaving Age: These people would have joined the working population, and if their number is high, it makes the labour force to be adversely affected.
11. Age Distribution: Nature determines the age distribution of a countrys population.
If majority of the people in a country fall below and above the working ages, the size of the countrys labour force will be low.
12. The Working Hours: If the working hours per week are many, many people will be scared away from joining the labour force and the size of labour force will be adversely affected and vice versa.
13. Trade Union Activities: Supply of labour may be reduced if trade Unions attach difficulties to an entire into a particular job e.g., a long period of time during apprenticeship may discourage some people from going into such trade.
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