Question

List two factors affecting the supply of labour.

Answer 1

1. Population: The overall size of a country’s population determines the absolute limit for its prospective workforce; hence, a larger population generally means more labour availability. However, the supply is highly influenced by the population's age structure; a large proportion of people of working age (usually 15 to 64 years old) extends the current labour supply, whereas a population dominated by young children or elderly dependents diminishes the active workforce.
2. Migration: Migration changes the size of the workforce by moving people across geographic boundaries. Immigration, or the inflow of workers from other regions or nations, quickly increases the local labour supply, giving industries a greater pool of both skilled and unskilled labour. In contrast, emigration, or the external flow of domestic workers seeking better employment prospects elsewhere, reduces the local labour supply and might result in shortages in vital sectors.