Labor As A Factor Of Production

LABOR
Labor as a factor of production is defined as all forms of human efforts put into or utilized in production. It also refers to man's mental and physical exertions generated in the process of production.

Human beings provide the necessary labor which combines with other factors to provide goods and services.
The reward for labor as a factor of production comes in form of wages and salaries.

Types of labor
 There are two main types of labor namely: skilled and unskilled labor.

1. Unskilled labor: This category of requires little or no formal education. They do not use mental effort, rather, they make use of physical effort or energy in production, hence their jobs are popularly referred to as brown collar jobs. As a result of their low level of education, with some kinds of training, they are usually employed as guards, cleaners, messengers, gardeners in companies and other places of employment.

2. Skilled labor:  This category of labor makes use of their mental effort in the process of production. This labor has undergone relatively long and specialized type of training in institutions of higher learning. They usually hold managerial and administrative positions, e.g. accountants, lawyers, engineers, medical doctors and teachers. Jobs by this category of workers are popularly known as white collar jobs.

Characteristics or features of labor
1. Labor is mobile: Labor is mobile both occupationally (from one job to another) and geographically (from one place to the other).

2. Labor has feelings: Labor cannot be used anyhow as its consent must be sort before it is used in production.

3. Labor is skillful: Labor becomes skillful through education and training.

4. Labor is a human factor: Labor is a human factor, hence, its supply can easily be controlled.

5. Labor requires motivation: For labor to perform effectively, efficiently and increase its productivity, it must be motivated in one way or the other.

6. Labor is not predictable: Labor as a factor of production cannot be easily predicted.

7. Labor has initiative: Labor can act on its own initiative.

8. Labor is perishable: Knowledge can diminish over time as a result of under-employment, continued unemployment, age and death.

IMPORTANCE OF LABOR
Labor is very important in production because of the following reasons:
1. Provision of personnel: Labor provides the required skills or personnel needed during the process of production.

2. Operation of machines: Labor is required in industries and companies to operate machines and carry out the various processes of production.

3. Production of goods and services: Labor, especially the active working population, provides goods and services needed by the populace.

4. It influences other factors of production actively: Labor plays a very active role on other factors of production because land and capital would remain idle if there is no labor to work with them.


You can also read the following related topics:
1.Land as a factor of production
2.Capital as a factor of production
3.Entrepreneur as a factor of production
4.Limitations to the scale of production