Labour

Definition of Labour:

Labour is the human effort combined to contribute towards efficient production. Labour may be physical, mental, skilled, or unskilled in the operation process which is usually for a reward. A labour-intensive strategy is used in overpopulated countries for production. 

Types of Labour:

There are different types of labour;

1. Skilled Labour: These are trained workers (labour) who have a relatively specialized type of training. They are trained for a long period of time (4 years or more to acquire skills with a certificate)

Examples are surgeons, teachers, lawyers, etc. The jobs of these workers are referred to as “White Collar Jobs”.

2. Semi-Skilled Labour: These are a set of workers (labour) that have passed through some form of training, for a short period of time. This type of labour is not as formal as skilled labour. Examples include car mechanics, tailors, etc. The jobs of these workers are called “Blue Collar Jobs”.

3. Unskilled Labour: These types of workers (labour) require no training, they receive no form of training to acquire specialized skills, and they partake in any job available.

Examples include clerks, building labourers, gatemen, cleaners, maids, etc.

Features of Labour:

1. Labour is Mobile: Labour can easily move from one place to another.

2. It is an inelastic supply and backward-sloping supply curve.

3. Labour lives for a period of time not forever.

4. Supply of labour is not fixed.

5. Labour is also subject to the law of diminishing returnsThe law of diminishing returns says that, if you keep increasing one factor in the production of goods (such as your workforce) while keeping all other factors the same, you’ll reach... More. The effort a worker puts in at 9 a.m. will be more than his effort at 5 p.m.

The law of diminishing marginal returns is a theory in economics that predicts that after some optimal level of capacity is reached, adding an additional factor of production will actually result in smaller increases in output.

Importance of Labour:

1. Labour is very important in production, without labour, land, and capital will be idle.

2. Labour provides the necessary manpower for the production of goods and services.

3. Labour encourages participation in production activities.

4. Highly skilled labour will be available to render special services when needed. 

5.  The reward for labour is wages and salary.