Labor is a conscious and appropriate activity that is used in production, as well as in the sale of goods and services. Any work performed by professionals is a labor. This is the main condition under which society exists and develops.
Labor economics is realized in the labor force - the mental and physical ability of people. Under market conditions, labor 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 forms supply and demand. People are creating a proposal that expresses the desire of an economically active people to sell their labor for a certain price and for a certain period of time.
Demand for labor is the amount of labor that can be sold at any price.
Labor economics is an industry that considers the interaction of workers, means of labor, as well as processes of reproduction, labor productivity.
Production is the quantity of goods that is produced by the employee per unit of time. The more productive the process, the more product is produced, the less labor is required.
Labor economics is that hiring an employee is compared with the organization with additional income that can be obtained through the emergence of a new workforce. As long as this income is greater than the cost of employee wages, it is profitable to hire new employees. But it should be remembered that the demand for labor must have its own limit so that the enterprise does not suffer losses.
Labor economics includes employee wages, investments in human capital, etc. 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.
The costs associated with raising the qualifications of workers and increasing labor productivity are investments in human capital. They are of three types - employee education, health care costs (disease prevention, care in medical institutions) and mobility costs.
Regarding the health of employees, the economics of occupational safety are very important. It is a means of preserving the health and life of the employees of the enterprise, while they are in the process of labor activity. Employees must undergo safety training. Each of them should know what to do in a particular emergency that may happen in the workplace.
In modern market conditions, enterprises are characterized by innovative labor management. The labor economy in this case is associated with the transition of production to technological execution, which requires highly skilled workers. They should be able to make a decision, as well as ensure high output and quality of work.
