Labor is a conscious and purposeful activity that is used in production, as well as in the sale of goods and services. Any work that is performed by professionals is work. This is the basic condition under which society exists and develops.
The labor economy is realized in the labor force - the mental and physical capacity of people. Under market conditions, labor power is capital that is sold to the owner. Therefore, labor in this case acts as a commodity.
The labor market is the most important of the entire resource market. Like any other, it generates supply and demand. People create a proposal that expresses the desire of an economically active people to sell their labor force for some price and for some period of time.
The demand for labor is the amount of labor that can be sold at any price.
Labor economics is a branch that considers the interaction of workers, means of labor, as well as the processes of reproduction, labor productivity.
Production is the amount of goods that is produced by an employee per unit of time. The more productive the process is, the more is producedproduct, the less labor required.
The economics of labor is that hiring an employee is compared to the organization with the additional income that can be generated by the appearance of a new workforce. As long as this income is greater than the employee's labor costs, hiring new employees is profitable. But it should be remembered that the demand for labor must have its limit so that the enterprise does not incur losses.
The labor economy includes the wages of workers, investment in human capital, and so on. Remuneration is provided to employees for the implementation of their activities. Its value depends on the tariff rate per unit of time. But there are several types of wages, where this rate takes various forms.
Expenses that are associated with improving the skills of workers and increasing labor productivity represent an investment in human capital. They are of three types - employee education, he alth care costs (disease prevention, care in medical institutions) and mobility costs.
When it comes to the he alth of employees, the economics of work safety is very important. It is a means of preserving the he alth and life of employees of the enterprise while they are in the process of working. Employees must be trained in occupational safety. Each of them must know what to do in a particular emergency that may occur onproduction.
In today's market conditions, enterprises are characterized by innovative workforce management. The labor economy in this case is associated with the transition of production to technological execution, which requires highly skilled workers. They must be able to make a decision, as well as provide high output and quality of work.
