Question

Write down the characteristics of labour.

Answer 1

The following are the main characteristics of labour as a factor of production :

1. Labour is directly connected with human efforts.
2. Labour is inseparable from labourer himself. It implies that the labourer embodies the services he performs. Labourer is the source of his own labour power.
3. Labour is perishable. It implies that the labourer cannot store his labour and so he has no reserve price for his labour. The labourer has, therefore to accept the wage offered to him.
4. The efficiency of labour differs from labourer to labourer. On the basis of efficiency, labour may be classified as unskilled labour, semi-skilled labour and skilled labour.
5. Labour has a weak bargaining power. It is because the labourer is economically weak, while the employer is economically powerful, although things have changed a lot in favour of labour during the 20th century.
6. All labours are not productive. All efforts are not sure to produce resources.
7. Labour is a moveable factor because labour can move from one job to another job or from one place to another place.