The supply of labour in general

There has been a great deal of analysis of the supply of labour both in general and into particular occupations or groups of occupations. There has also been much study of the attitude of the individual to work and the response to wage levels, incentives and taxation. The factors influencing the overall numbers of workers available are very clear - population size and its structure in terms of age and sex distribution. Those influencing the numbers able and willing to work at a particular job, or in a specific district or for certain wage levels are much less clear. Obviously educational levels are important, as are levels of skill and training, but there are more imponderable factors such as the so-called net advantages of jobs or the impact of the social security system. We have, in the United Kingdom, what is called the ‘poverty trap’ where people who would like to work find that working for the low wages in the only employment that they can obtain gives them less disposable income than remaining within the social security system with its multitude of means tested benefits. When the individual’s attitude to the supply of labour is studied it becomes apparent that most of us reach a point, some sooner than others, after which we prefer extra leisure to the additional income offered from working longer hours.

The supply of labour in general, or the total labour force, is dependent on the size of the nation’s population, particularly on the number of those between the normal school leaving age and the normal retirement ages. It is also reliant on the willingness of the people in this pool of potential workers to engage in paid employment and on how much work they do when working. There is, therefore, a mix of quantity and quality. Many in this pool of potential workers may not, in practice, work. Many of them are women who choose to withdraw temporarily or even permanently from the labour market in order to rear children. A few men do the same. Others retire early, either voluntarily or as a result of pressure. Some choose to work part time and nowadays many can find no other sort of employment. There is also a group within this age range who are unable for physical or mental reasons to work or who work sporadically. Some countries, although the number is falling, have conscription into their armed forces and thereby reduce their available labour force. A very important reduction in the pool of workers is caused by large numbers entering higher education and thus withdrawing from the mainstream workforce although many students do work intermittently and an increasing number are compelled to work regularly to finance their studies. There are a few factors that increase the supply of labour in general, for example immigration although that may be matched or exceeded by emigration in any given time period. Some countries have large seasonal flows of foreign workers and some attract workers in particular trades for varying periods, for example in the construction industry. Another factor raising the labour supply is the fact that some workers have more than one job and thereby swell the labour force. The overall supply may be augmented by the use of children within the family unit as workers or illegally by other employers. Some countries, especially developing economies, have large, active child labour forces even though it may be against their laws.

Comprehension check

I. Definition of terms.

a) The main notion of the text is “labour force”, which you discussed before reading the text. Say, what definition it best suits.(The definitions are taken from a dictionary of economic terms).

• Рабочая сила – совокупность физических и умственных способностей человека, которые он использует для производства материальных благ и услуг.

• Трудовые ресурсы – часть населения страны, обладающая совокупностью физических и духовных способностей, общеобразовательными и профессиональными знаниями для работы в народном хозяйстве.

b) Can you explain what a “poverty trap” means? If not, read that part of the text again and discuss it within your group. Do you think the situation of a “poverty trap” exists in modern Russia?

II. Answer the following questions.

1. What is the main factor influencing the size of the labour force?

2. Are the labour force and potential labour force equal in size and make-up?

3. What is relation between a perfect social security system and reduction of workforce?

4. It is the worker himself who is to be concerned with his/her education, isn’t it?

5. What are the groups of potential workers who may not, in practice, wish to work?

6. How do some countries solve the problem of workforce shortage? Are all of these steps legal?

7. How do global oil and gas companies, operating in severe conditions of the North, solve the problem of personnel recruitment?

III. In the text find words, phrases or sentences which imply the following.

1. The age when people can stop working is not the same in different countries.

2. If a person gets some money from the state and the sum is enough to live on, he/she may not wish to work at all.

3. The skill of the workforce is to correspond the needs of modern economy.

4. Small firm don’t have full training programmes for their workers.

5. Usually women with small children withdraw from jobs.

6. Workers are free to move from one country to another in search of suitable work.

Text 2

Pre-reading task

a) Discuss the following questions before reading the text.

1. Is it good or bad when there are a lot of old workers at an enterprise? Give your reasons. Is it easy or difficult for a young specialist to get a job? What are employers requirements for applicants? Is it easy for a young specialist to get promotion? What does it depend on?

2. Do you agree with a proverb “Век живи – век учись”?

Would you like to have additional training in your speciality after graduating from the university? Why do you think such training will be necessary? Why not?

b) Key words: personnel, development opportunity, traineeship, allowance, a grant, retraining, to promote, performance evaluation.