Scribd
Upload
8 views

Workers Part 1

Workers

Uploaded by

yummysweets67
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
8 views

Workers Part 1

Workers

Uploaded by

yummysweets67
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 6

Workers

Prepared by Mrs D.Dhununjoy Motaye


Factors aFFecting an individual’s
choice of occupation
 An individual’s choice of occupation depends on many factors, which can be
categorized as wage and non wage factors
1. Wage factors refer to the financial rewards that workers receive in return for their
labour services. These are major influences on their choice of occupation.
The different types of payment a worker may receive in return for their labour:
I. Wages
Wages are time based, paid hourly, daily or weekly, so are a variable cost to firms.
II. Salary
Salaries are paid monthly at a fixed rate irrespective of the amount of work done, so
are fixed costs
III. Commission
A percentage of the value of products or services sold.
IV Bonus
An additional lump sum of money paid during the year, usually dependent upon
performance.
Factors aFFecting an individual’s
choice of occupation
2. Non wage factors are also a major influence on an individual’s choice of
occupation. While a person may be motivated by money in the short term, he or
she will also want to feel happy and motivated at work in the long term. Non
wage factors include the following:
I. Level of training required
Some jobs require few skills, such as cleaning or shop work. By contrast,
other jobs require many years of training such as civil engineers, pilots and
accountant.
II. Level of education required
Some jobs require no or minimal education whereas other jobs require post
graduate levels of education for example: dentists.
Factors aFFecting an individual’s
choice of occupation

III. Job satisfaction - many people are prepared to work for less if they enjoy the work. This is
personal to the individual.
IV. Career prospects – opportunities for promotion.
V. Fringe benefits – non-financial incentives given to the employees such as payment of school
fees, length of holidays, job security and the location of the job.
VI. Level of experiences required
Some jobs require no or minimal experience whereas other jobs such as judges and law
makers, require a minimum amount of experience
Wage determination
 Wages are determined by the interaction of the demand for labour and supply of labour.
I. Demand for labour
It refers to the number of workers that firms are willing and able to employ at a given wage rate. As
with all factors of production, the demand for labour is a derived demand. This means that labour is
demanded for the goods and services it produces, and not for itself. For example; bakers are demanded
for the bread they bake, rather than for the sake of hiring bakers. The demand for labour curve can be
shown below:
The diagram shows a downward sloping demand for labour curve. When the wage rate rises from W1 to
W2, the number of workers demanded decreases from Q1 to Q2. This is because firms are not able to
hire more labour when wage rate is higher.
Factors affecting the demand for
labour
 1. the level of total demand in the economy
During a boom or a period of economic growth, the demand for goods and services and
therefore the demand for labour to produce them will be higher. By contrast, the demand for
labour falls during a recession
2. The productivity of labour( output per worker over a period of time)
The demand for workers increases as their productivity increases through training and changes
to production methods. Recognition of workers’ achievements can also be motivational and
increase productivity.
3. The cost of labour as compared to the cost of machinery and technology that could replace
the labour
Technology and machinery can often perform the tasks carried out by workers. Although
technology and machinery are expensive to purchase in the short run, they save money for the
business in the long run

You might also like