![]() ![]() If at any time, the demand for unskilled workers increases, it cannot be supplemented quickly “by just making orders or indents” as it can be possibly done in case of other commodities.įor more supply of labour, we have to wait for the growth of population, which may take a long period of about 15-20 years. The supply of labour cannot be increased or decreased quickly, as the supply of labour is related with the population of the country. But as wage rate increases further the labourer may wish to enjoy more leisure than to work for longer hours, as his living standard has improved. ![]() As wage rate rises, a labourer becomes willing to supply more labour, thus labour supply also rises. As price of any factor rises the supply of it also rises, but that is not the case with labour. Individual labour supply is not similar to the supply of any other factor. Because of this peculiarity, a labourer does not have the same bargaining power similar to his employer.ĥ. As such a labourer (worker) agrees to work even at a lower wage, when he feels that his labour is likely to be wasted. If a labourer does not work for a day, his one day’s work will be lost forever. A worker can perform his services without co-operation from land and capital, but land and capital cannot be put to any use for productive purpose unless and until efforts from labourer are made available. A labourer (worker) can think, act and move in different ways and manner and thus, can function according to his need or circumstances. This is because the labourer is a living entity. Land and capital are inactive factors of production because they cannot produce anything on their own, but labour is an active factor. ![]() If a student plays a game (cricket or hockey) vigorously, with great exertion of body and mind for pleasure only or a mother looks after her child out of affection or a man works in a garden for pleasure/hobby then these exertions are not considered by economists as ‘labour’ because they have not done their physical and mental work with an objective of earning money. ![]() The work done by machines or animals is not ‘labour’. According to MARSHALL, “Any exertion of mind or body undergone partly or wholly with a view to some good other than the pleasure derived directly from the work is called labour”. Any effort or exertion undertaken for the sake of pleasure or social service is not considered as labour. It indicates the aggregate of all human physical and mental efforts used in creation of goods and services with a motive to earn money. Labour is the human resource of production. Labour- The Most Important Factor of Production 5. In this article we will discuss about:- 1. ![]()
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