Demand for labour refers to the number of workers or people employers are willing to offer jobs and retain in employment at a given wage rate.
Or It is demand derived from the demand for the product’s labour is required to produce.
Factors that determine the demand for labour
- The level of demand for a product that labour helps to produce.
- The level of wages or price of labour.
- The level of skills of labour.
- The availability of co-operant factors, for example, land, capital, etc., complement labour.
- The proportion of the cost of labour to the total cost of production.
- The possibility of substituting labour for other factors of production.
- The amount of output of labour (the productivity of labour).