What is LABOR

and
EMPLOYMENT?
Labor
Refers to the exertion of
human effort to acquire
an income. Human effort
includes physical and
mental exertion.
Characteristics
of Labor.
1. Labor is Perishable.
This characteristics
of being stored. Labor
that is wasted is lost
forever.
2. Labor and the individual are
inseparable.
A man working for wages
cannot separate his physical
self from his labor if he wants
to enjoy the comforts of
another room.
Labor Supply does not change quickly.
The supply of labor increases
steadily as population grows.
When there is a great deamand
for labor in particular year,
labor cannot made to increase
abruptly.
4.Most employable persons do not
like to move.
Even if the demand
for labor is higher in
some places, many
people still prefer to
remain unemployed.
 Reasons:
* They want to stay close with their families.
*They are not aware of the demand for their
service elsewhere.
*They lack the required skill.
*They cannot afford the cost
moving from one place
another
Kinds of Labor
Manual Labor
This type of labor mostly
involve the exertion of
physical effort specifically
the use of brawn and
muscles.
Clerical Labor
Is considered as next higher
in order than manual labor.
Most parts of the clerical work
are done with physical effort:
exertion is not as great as that
in manual labor.
Professional Labor
The professions include the following;
PHYSICIANS, LAWYER, ENGINEERS,
CHEMISTS, TEACHERS, NURSES,
and others. Most of the profession
require sufficient training and
experience.
The Labor of Management
Managers of all kinds and types perform
functions which may be referred to as
labor of management. Included under
this class are front line managers like
supervisors and foreman, middle
managers like branch and area
manager.
Labor of Entrepreneur.
This one who organizes the
business and sees to it that
the business and sees to
it that the business
becomes stable.
The Labor of Investors.

A very important ingredient

of economic development is
output of the investors.
Supply of Labor
It is important to know the
circumstances that effect
their decision to make labor
available in the market.
Kinds of Supply Labor

* Market Activity
*Non-market Activity.
Effect of the Wages Rate.
The substitution effects.
Households will naturally
provide sometimes for non
market activities.
Income Effect.
When the households wage
rate is higher, more income will
be available to the household
for spending.
Backward-Bending Labor Supply Curve.
When the household begin to have
sufficient income, labor supply tends to
decrease. Stated simply, wage earners
reduce the time they spend
for work when they receive
higher wages.
THE DEMAND
FOR LABOR
Labor- is factor of production that
is required by business firms.
Business Firms- are sources of
demand of labor.
Quantity of Labor Demand- is the
total number of man hours (or
man day)hired by all firms in an
economy.
The Real Wage Rate.
Real Wage- refers to the purchasing
power of a given nominal(per wage
money)
Nominal Wage Rate- is the
amount in pesos paid to
a worker for a unit of
work.
Manual Labor
This type of labor mostly
involve the exertion of
physical effort specifically
the use of brawn and
muscles.