factors affecting the supply of labour

Factors affecting the supply of labour

• Wage/non wage remuneration – supply of labour in different labour markets expands as benefits increase. As the labour market tightens nationally, upward pressure on wages occurs. This becomes a cause of cost-push inflation.

• Labour force growth –natural increase, immigration, age distribution and participation rate will all contribute to the size of the labour force.

• Labour force growth has been a crucial factor for the Australian labour market over the last 15 years. ie. The labour force has increased from 8.5 million to 11 million

• Participation rate - labour force X 100

working age pop 1

Male participation rate has decreased and female participation rate has increased.

• Factors - State of the economy, social attitudes, school retention rates, retirement age

• Working conditions – hours, sick leave, holidays, LSL, danger, facilities ……..

• Human capital – Australia has an over supply of unskilled workers and a shortage of skilled, experienced workers. Skill, education and training are key supply factors in all professional labour markets

• Labour mobility – geographic and occupational mobility have become more important as the labour force becomes more flexible.

Australian Workforce

• Workforce = Labour force

• All those over 15 years who are working or actively seeking work (unemployed)

• Describe and account for the trends in Australia’s workforce over the last 10 years