2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The labor market and its structure consist of a specific commodity - labor power. Therefore, the buyer does not acquire a person, but his ability to work. Let's take a closer look at the main points.
Demand and supply in the labor market are formed under the influence of a number of prerequisites that can be divided into large groups.
Economic factors
Demand and supply in the labor market are determined by the sale and purchase of labor, which can affect this process and, of course, the cost of their services.
Non-economic factors
We are talking about social, national, demographic and legislative prerequisites that affect supply and demand in the labor market. Their significance and character are determined by the peculiarities of the country's historical and economic development. The pattern of its formation is that it is heterogeneous in composition, differing in specific characteristics and the presence of a large number of segments.
Let's highlight non-economic factors in more detail.
First of all, on demand andsupply in the labor market affects the total number. The dynamics of the population, the present and future labor resources are judged, as a rule, by indicators of mortality, fertility, life expectancy, and so on. At present, the demographic situation is rather complicated. Thus, the death rate significantly exceeds the birth rate of the population, which will negatively affect in twenty years, creating a significant labor shortage in the future.
The second significant factor that determines supply in the labor market is the number of able-bodied population. We are talking about the part that has the necessary mental and physical abilities.
The third significant factor is the amount of hours worked. The employee himself will be able to determine how much he wants to work and what place he will choose.
The fourth factor is the qualitative characteristics of workers. We are talking about the level of education, qualifications of specialists, productivity and so on. Russia occupies one of the leading places in this parameter.
The fifth parameter is the presence of migration processes of the able-bodied population. It involves the movement of citizens from one territory to another with a change in place of residence and work. In Russia, immigration processes have led to an increase in the number of labor force offers on the labor market and increased unemployment. Moreover, visitors are ready to perform duties at a lower cost than its citizens. At the same time, emigration from the country has clear signs of a "draindrains".
Consequently, the main subjects of demand in this market are the state and business. In the latter case, we are talking about large companies, medium and small businesses.
There is an optimal pattern: the demand for labor services is strictly inversely related to the value of wages. With the growth of the latter and the presence of other equal conditions, the number of proposals decreases. Otherwise, the demand for labor increases.
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