What is LABOUR MARKET EFFICENCY?The market in which workers find paying for workemployers and the employers find skilled andwilling to work workers and a wage rate isdefined in the same way as in a goods market inaccordance to Demand & Supply. Efficiency ingeneral describes the extent to which time, effortor cost is well used for the intended task orpurpose.
The term "efficient" is very much confusedand misused with the term "effective". Ingeneral, efficiency is a measurable concept,quantitatively determined by the ratio ofoutput to input. It is often used with thespecific purpose of relaying the capability of aspecific application of effort to produce aspecific outcome effectively with a minimumamount or quantity of waste, expense, orunnecessary effort.
• In the labour market, labour services are exchanged and those negotiations occurring between buyers and sellers partly determine the placement of workers in jobs with specified wages, benefits, and conditions of employment.• In the most basic terms, the supply of labour refers to the number of people currently working or actively seeking employment. The size of the labour supply is determined by the number of individuals of working age6 (the working-age population) as well as the proportion of the working-age population that wishes to work
How they choose??Firms choose their staffing levels according to a number of factors, including:• the cost of labour;• the productivity of the workforce;• the current and anticipated level of production• the price that the firm can command for its output
Labour market issues include :• Unemployment• Participation Rates• Wages• Ageing workforce• Skill Gaps
Cooperation in labour-employer relationsCountry Score RankSwitzerland 6.1 1Singapore 6.1 2India 4.6 46USA 4.8 36China 4.5 51How would you characterize labor-employer relations in your country? [1 = generallyconfrontational; 7 = generally cooperative]
Flexibility of wage determinationCountry Score RankSwitzerland 5.7 18Singapore 6 7India 5.2 58USA 5.5 32China 5.3 52How are wages generally set in your country? [1 = by a centralized bargainingprocess; 7 = up to each individual company]
Rigidity of employmentCountry Score RankSwitzerland 7 10Singapore 0 1India 30 81USA 0 1China 31 82 Rigidity of Employment Index on a 0–100 (worst)
Hiring and firing practicesCountry Score RankSwitzerland 5.8 3Singapore 5.8 2India 4 66USA 5.1 8China 4.3 44 How would you characterize the hiring and firing of workers in your country? [1 = impeded by regulations; 7 = flexibly determined by employers]
Pay and productivityCountry Score RankSwitzerland 5.3 5Singapore 5.5 1India 4.3 39USA 4.9 8China 4.7 3 To what extent is pay in your country related to productivity? [1 = not related to worker productivity; 7 = strongly related to worker productivity]
Reliance on professional managementCountry Score RankSwitzerland 6 9Singapore 5.4 11India 4.5 53USA 5.5 17China 5.2 46In your country, who holds senior management positions? [1 = usually relatives orfriends without regard to merit; 7 = mostly professional managers chosenfor merit and qualifications]
Brain drainCountry Score RankSwitzerland 6 1Singapore 5.4 2India 4.5 32USA 5.5 3China 5.2 33 Does your country retain and attract talented people? [1 = no, the best and brightest normally leave to pursue opportunities in other countries; 7 = yes, there are many opportunities for talented people within the country]
Female participation in labor forceCountry Score RankSwitzerland .88 32Singapore .74 82India .42 130USA .85 44China .88 34 Ratio of female participation in the labor force (%) to male participation in the labor force (%)