Demand and supply in the labor market. Formation factors

The labor market and its structure consist of a specific commodity - labor. Therefore, the buyer does not acquire a person, but his ability to work. Let us examine in more detail the main points.

Demand and supply in the labor market are formed under the influence of a number of prerequisites, which can be divided into large groups.

Supply and demand in the labor marketEconomic forces

Demand and supply in the labor market are determined by the purchase and sale of labor that can affect this process and, naturally, the cost of its services.

Non-economic factors

It is about social, national,demographic and legislative prerequisites, which affect the supply and demand in the labor market. Their significance and character are determined by the peculiarities of the country's historical and economic development. The regularity of its formation is that it is heterogeneous in its composition, differing in its specific characteristics and the presence of a large number of segments.

We will outline in more detail non-economic factors.

The labor market and its structure

First of all, the supply and demand in the marketTotal labor force affects the workforce. On the dynamics of the population, the present and future labor resources are judged, as a rule, in terms of mortality, fertility, life expectancy and so on. At present, the demographic situation is rather complicated. Thus, mortality significantly exceeds the birth rate of the population, which will adversely affect in about twenty years, creating a significant shortage of labor in the future.

The second essential factor on whichproposal on the labor market, this is the number of able-bodied population. It's about the part that has the necessary mental and physical abilities.

Proposal in the labor market

The third important factor is the amount of time worked. The employee himself will be able to determine how much he wants to work and what will he choose his place.

The fourth factor is qualitycharacteristics of employees. We are talking about the level of education, qualifications of specialists, productivity and so on. Russia in this parameter is one of the leading places.

The fifth parameter is the presence of migration processesable-bodied population. It implies the movement of citizens from one territory to another with a change in place of residence and work. In Russia, the immigration process has led to an increase in the number of jobs in the labor market and increased unemployment. And visitors are ready to perform duties for a lower cost than its citizens. At the same time, emigration from the country has clear signs of a brain drain.

Consequently, the main subjects of demand in this market are the state and business. In the latter case, we are talking about large companies, medium and small businesses.

There is an optimal pattern: the demand for labor services is strictly inversely related to the amount of wages. With the growth of the latter and the presence of other equal conditions, the number of offers decreases. Otherwise, the demand for labor is increasing.

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