The Labor Market – Efficiency and Labor Mobility

Labor efficiency is the ability of labor to increase output without increasing the amount of labor. Increased efficiency is usually expressed in terms of increased labor output in a shorter period of time without any drop in the quality of the goods and services produced. If the workforce is efficient, the quality of the goods and services produced will be high.

There are many recommendations to consider when it comes to improving work efficiency. Such forms are as follows:

Education and Training: The level of education and training a worker receives will go a long way in increasing the efficiency of the job. A well-educated or well-trained worker is in a position to increase efficiency in his work.

Technology level: High technology will increase work efficiency.

Efficient management: High technology will increase work efficiency.

Personal ability of the worker: If a worker possesses a natural ability to do a particular job, his work becomes efficient.

Attractive wages: When a worker’s wage or salary is attractive, it will drive or promote the worker’s efficiency.

Climatic conditions: The physical or climatic conditions in a workplace can affect the efficiency of the work. Hot weather reduces work efficiency, cold weather or environment increases work efficiency.

Worker health status: A healthy worker is more likely to be more efficient than a sicker worker.

Efficiency of other factors of production: The efficiency of other factors of production such as land, capital, and the entrepreneur when combined with efficient labor will increase productivity.

Worker Intelligence: Some workers are highly intelligent, while others are not. Very smart workers rarely make mistakes.

Conditions of service: An improvement of the conditions of service such as the availability of transport vouchers, bonuses, overtime, etc. It will help increase work efficiency.

Application of the division of labor: The application of the division of labor and specialization in any organization can result in the efficiency of work.

Level of commitment and attitude: The level of commitment and attitude of a worker can affect the efficiency of work, when a worker can affect the efficiency of work. When a worker is highly engaged in her work, this will result in work efficiency.

Job Security: Work efficiency can be increased if a worker is confident that his or her job is insured.

Promotion: Frequent promotions of workers in any organization can lead to an increase in work efficiency.

labor mobility

This is the ease with which labor can move from one geographic area to another; or from one occupation to another. The workforce is said to be mobile when it is easy for workers to move from one geographic area to another or to change jobs. There are two main types of labor mobility.

Geographic mobility of labor

Geographical mobility of labor is the ease with which workers or labor can move from one geographic location to another to pursue the same occupation or change occupations. When a worker moves from one city to another, for example from London to Sheffield, without changing the work he is doing, we say that he has moved geographically. An accountant in London may move to Sheffield to continue working as an accountant. Take note that it is the movement of labor or workers from one area to another area, this is called geographic mobility of labor. The factors that affect the geographical mobility of labor are:

1. Transportation cost: A worker can move from one place to another if the transportation cost is low. But when it is high, movement becomes difficult.

2. Housing problems: Workers may not be able to move to a new location where there are housing problems.

3. Weather conditions: Members can relocate wherever favorable weather conditions exist.

4. Family and cultural ties: Members of a family or culture may find it difficult to move from one place to another with strong family or cultural ties.

5. Government Policies: Certain government policies that may assist in the deliberate relocation of labor to different states other than their home states.

6. Social and economic infrastructures: The availability of social and economic infrastructures, eg electricity, piped water, telecommunications, etc., encourage the workforce to move to places where these infrastructures are available.

7. Discrimination: Labor may not be able to move if there is a possibility of discrimination against them at their destination.

8. Language Barrier: When it is difficult for Labor to speak the language of a particular area, it becomes very difficult for them to move to said area.

Occupational Mobility of Work

This is the ease with which a worker or workforce moves from one occupation or job to another. When a musician becomes a footballer, he has changed his profession. The factors that affect labor mobility are as follows:

1. Cost and duration of training: Some professions are expensive to train in terms of time and money, for example, the medical profession.

2. Skill or aptitude: Some jobs require natural skills or talents and those who are not gifted may not fit into such jobs, for example a musician.

3. Employment Outlook/Age: After a certain age (eg, 45), employers will not hire these people. They have poor prospects for an employer as they only have a short working life.

4. Trade Union/Professional Association Restrictions: Some professional bodies (eg accounting, law) require certain qualifications prior to admission.

5. Personal reasons: Personal preference for a particular job and aversion to available alternatives can discourage moves.

6. Family and friendship ties: Friendship ties sometimes make it difficult for some people to change jobs. Also, some families are known to be associated with a certain profession, and it will be difficult for a family member to leave that profession.

7. Political/religious instability: When there is political instability or religious crisis, it will be very difficult for the workforce to move.

8. Wage rate: Labor will move if there is a wide margin in wages, but if it is low, labor may not move.

9. Conditions of service: In addition to salary, the conditions of service in a workplace, for example, bonuses, overtime, staff bus, car and housing loan, etc. When present, it will stimulate labor.

10. Discrimination: There may be discrimination based on sex, color, age, religion, etc. This can affect the occupational mobility of the workforce.

The efficiency and mobility of the workforce are vital pillars in the economy of a nation or region. They can stabilize or slow down the rate of development of a region.

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