Labour Market: Basic Facts You Need To Know

The apt knowledge of the dynamics of the labour market ought to be acquired and applied in order to conserve resources and to optimise productivity.

Labour is a key factor of production. It encompasses all human efforts towards the production of goods and services. Therein lies several economic advantages. 

For the best of labour to be achieved certain factors should be known and considered, given specific circumstances. These are the common ways labour efficiency can be improved:

• Providing Education and Vocational Training: Education and training are very important for improving the efficiency of labour. When workers are well educated and trained, they gain the knowledge and skills needed to perform their duties effectively. Vocational training helps them to handle tools, machines and new technology with confidence. A well-trained worker makes fewer mistakes and can produce more within a shorter time. For example, a trained mechanic can repair vehicles faster and better than an untrained one.
• Improving Working Conditions: Good working conditions make workers more comfortable and motivated to do their jobs. When the workplace is clean, well-ventilated, safe, and properly organized, workers can focus better on their tasks. On the other hand, poor working conditions, such as heat, noise, or unsafe environments, reduce concentration and productivity. Providing rest breaks, safety equipment and adequate facilities encourages workers to put in their best effort.
• Ensuring Adequate Health Care: Healthy workers are more active, energetic, and productive. Employers can improve efficiency by providing regular medical check-ups, health insurance and clean environments that prevent diseases. When workers are in good health, they are less likely to be absent from work and can perform their duties effectively. For example, a company that provides a clinic for its workers will experience fewer sick days and higher output.
• Introducing Incentive Schemes: Workers tend to work harder when they know they will be rewarded for good performance. Incentives such as bonuses, promotions, awards and profit-sharing schemes encourage workers to increase their productivity. A motivated worker who feels appreciated will give more effort and time to achieve better results. Incentives also create healthy competition among employees, which helps the organization grow.
• Using Modern Tools and Technology: Modern equipment and technology make work faster, easier, and more accurate. When workers use up-to-date machines or digital tools, they can produce more goods or provide better services in lesser time. For example, farmers using tractors can cultivate larger areas of land than those using hoes. Therefore, employers should invest in modern technology and train workers on how to use it properly to improve efficiency.
• Effective Supervision and Motivation: Good supervision ensures that workers are guided, corrected and supported while carrying out their duties. Supervisors who lead by example, communicate well and provide feedback help workers to stay focused and improve in their performance. Motivation from supervisors, such as encouragement and recognition, also boosts workers’ morale and makes them eager to achieve better results. Proper supervision helps prevent waste of time and resources.
• Encouraging Good Work Attitude and Discipline: A worker’s attitude toward work greatly affects efficiency. When workers are punctual, honest, and dedicated, they tend to perform better. Employers can encourage a good work attitude by rewarding discipline, enforcing rules fairly and building teamwork. Workers who take pride in their job and show commitment will naturally produce better quality output and contribute more to the overall success of the organisation.

Mobility of Labour

Mobility of Labour refers to the ability of workers to move from one job, occupation or place to another in search of better employment opportunities. It shows how easily workers can change the type of work they do or the location from where they work. There are two main types of labour mobility. Mobility of labour is important because it allows workers to find jobs where their skills are best used. It also helps employers get the right workers and promotes a more balanced distribution of labour across the economy.

Types of Mobility of Labour

Occupational Mobility:

Occupational mobility of labour refers to the ability of a worker to move from one type of job, trade or occupation to another. This type of mobility depends largely on the worker’s education, skills and experience. For example, a person who is trained as a teacher may decide to work as a banker if they acquire the necessary financial skills. Occupational mobility can also happen within the same occupation. For instance, a teacher moving from one school to another is also changing occupation in a small way.

There are two main forms of occupational mobility:

1. Horizontal mobility: It is the movement within the same level or similar type of job (such as a carpenter moving from one company to another)
2. Vertical mobility: It is the movement up or down the job ladder (such as a teacher being promoted to principal or demoted to assistant teacher). High occupational mobility is often found in workers with diverse skills or those who are adaptable to new technologies and job demands.
3. Geographical Mobility: Geographical mobility of labour refers to the ability of workers to move from one location to another in search of better employment opportunities. This could involve moving from one town, city, state or even country to another. For example, a nurse moving from Enugu to Abuja for a hospital job, or a software engineer migrating from Nigeria to Canada for better pay, are both cases of geographical mobility. The ease of geographical mobility depends on factors such as the availability of housing, transportation, family ties, cost of relocation and government immigration policies. Workers are more likely to move when they are offered higher wages, better working conditions or improved living standards. However, language barriers, cultural differences or family responsibilities can make geographical mobility more difficult. Geographical mobility is important because it helps reduce unemployment in one area and fills job vacancies in another, contributing to a more balanced labour market.

Factors Affecting Mobility of Labour

• Level of Education and Skills: The level of education and skills a worker possesses greatly affects how easily the person can change jobs or move to new locations. Highly educated and skilled workers usually have more job opportunities because their qualifications are in demand across many industries. They can adapt to new roles or move to other regions without much difficulty. On the other hand, unskilled workers may find it hard to change jobs since their abilities are limited to certain tasks.
• Availability of Job Opportunities: When there are many available jobs in different areas or industries, workers find it easier to move from one place or job to another. A region with plenty of factories, offices, or businesses attracts workers from areas with fewer opportunities. However, if jobs are scarce, workers are forced to stay where they are, even if they would like to move, making mobility very low.
• Cost of Moving: The cost of moving from one place to another affects how easily workers can relocate. When the cost of transportation, accommodation or relocation is high, many workers may choose to stay where they are instead of moving for a new job. For example, a worker may not move to another city if the cost of rent and transport there are too expensive. Lower moving costs make labour mobility easier.
• Family and Social Ties: Workers with strong family and social connections often find it difficult to move away from their hometowns. Family responsibilities, such as caring for children, elderly parents or spouses, can limit the worker’s freedom to relocate. Also, people who are attached to their communities, friends or cultural traditions may prefer to remain in familiar surroundings, even when better job opportunities exist elsewhere.
• Government Policies: Government policies can either encourage or restrict the movement of labour. For example, immigration laws, work permits or residence restrictions can prevent people from moving freely between countries or even within regions. On the other hand, policies that promote free movement of workers, such as open borders within economic unions, can make it easier for people to change jobs or locations.
• Language and Cultural Differences: Language barriers and cultural differences make it difficult for workers to move from one area or country to another. A worker who cannot speak the local language or adapt to new customs may find it hard to settle in a new environment. For example, a worker from Nigeria may find it challenging to work in countries like Chin or France, where English is not popularly spoken. These differences reduce mobility across regions.
• Working Conditions and Pay Differences: The quality of working conditions and the level of wages also affect how easily workers move. If working conditions and pay are much better in another place, workers are more likely to move there in search of improved living standards. However, if wages are similar everywhere or the difference is negligible, workers may not see any reason to relocate. Better conditions, therefore, attract more labour movement.

Summary

• Efficiency of labour can be improved through providing sound education and professional training for workers.
• Mobility of labour means the ability or ease with which workers can move from one job, occupation, or location to another in search of better employment or working conditions.
• There are two main types of mobility of labour: occupational mobility and geographical mobility:
• Several factors influence how easily labour can move from one job or place to another. These include: level of education and skill, job availability, and cost of movement.