The Labour Market Flashcards

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What is the labour market?

The market where workers and employers meet to find jobs and agree pay.

Who supplies labour and who demands labour?

People of working age supply labour. Firms and the government demand it.

Why is the demand for labour called derived demand?

Because it comes from demand for the goods and services workers help to make.

Name two non-pay factors that can increase a firm’s demand for labour.

Higher sales of the firm’s product and better worker skills that raise output.

Name two non-pay factors that can increase the supply of labour.

More people of working age and better childcare.

What is human capital?

The skills, knowledge and experience that make a worker productive.

What are the two types of labour mobility?

Occupational mobility: moving between jobs or skills. Geographical mobility: moving between places.

Give one barrier to labour mobility.

Lack of the skills needed for a new job.

What is labour productivity?

Output produced per worker per hour.

How does better job information help the labour market?

It matches workers to jobs faster and cuts search time.

What is a trade union?

An organisation that represents workers and bargains over pay and conditions.

What is flexible working? Give one example.

Work patterns that change hours or place. For example, part-time or remote work.