Definition of labour economics
Labour economics is a branch of economics study that deals with the dynamics and functioning of labour. The concerned research mainly deals with the struggles and worker, their demands in the market, the rate of wages, annual income and many more factors related to labour. A business organization requires a workforce for conducting business operations. Therefore, without struggle and worker, no business corporation can develop its business. To manage the labours and other factors related to efforts are dealt with during labour economics. A company needs to keep records of its struggles and payment details to estimate the cost of labour.
Importance of labour economics
Understanding labour economics is vital as labour economics is the depth and deals with numerous factors. Students studying economics and finance are required to make a detailed study on labour economics as it is considered one of the essential and mandatory issues. Moreover, it plays a vital role for business organizations because it is the particular field through which business corporations’ management analyses the worker details.
The supply and demand curve is quite prominent in labour economics. The labours or workers denote the supply curve, and the employers represent the demand curve. Utilizing labour economics methods, a business organization can set the wage rate of its labours, and how many struggles will be recruited can be decided. Moreover, the average income rate of works can be stated by labour economics analysis.
Labour economics can be a handful for a country to analyze its employment and unemployment rate, per capita income, average working labour rates and other statistics. The students currently studying labour economics can utilize it in their future careers and derive career growth benefits. The popularity of studying labour economics among the students has increased remarkably.
Different factors of labour economics
Labour economics covers a vast area of economics that deals with the subject of employment and unemployment. Therefore, it is a significant field of study in economics. It is highly required for a country to calculate its jobs and unemployment rates on an annual or half-yearly basis.
The formula for unemployment rate calculation is stated below:
Unemployment Rate = (Number of Unemployed / Labour Force) * 100