Labour force is the working population in a country. The labour force of a country are those between the ages of 18 and 65 (there maybe differences for different countries) who are allowed by law to work and who make themselves available for work.
Human capital is the knowledge, talents, skills, abilities and experiences possessed by an individual. It is the wealth of knowledge possessed by the individuals that can be used in accomplishing a task. It is also the process of increasing the working capacity of a worker through education, practice, lectures and symposium.
EFFICIENCY OF LABOUR
Labour efficiency means increased productivity per worker. It is the capacity of the labourer to do more and better work during a given period of time. Labour efficiency is measured in terms of quantity of output which can be obtained from a given input of labour holding other variables constant.
HOW TO IMPROVE LABOUR EFFICIENCY
1) Education and Training: A worker who has proper education and training will be more productive. A worker who has primary education up to university education is expected to be more efficient compared to a worker who only has primary or secondary education.
2) Working Conditions: Employers should provide good working conditions in terms of proper lighting, ventilation, good hygienic environment and spacing. A labour working in a hygienic environment is expected to be more productive.
3) Health: Good health is bound to increase the productivity of workers. The provision of clinics, drugs for the workers will improve labour’s efficiency. The consumption of adequate food, clothing and shelter improves labour’s efficiency.
4) Incentives and Remuneration: A worker who is well paid will be efficient. The provision of appropriate incentives such as higher pay, bonuses and car allowances will improve labour’s efficiency and productivity.
5) Weather Condition: A poor weather will have negative impact on the productivity of labour. A labour working in a very hot or cold weather cannot work for long hours, this will make productivity to fall.
6) State of Mind: A labour that is worried and not happy will not put in his best unlike a labour that is happy. A worker in a good state of mind will definitely put in his best and increase productivity. This is a psychological factor.
FACTORS AFFECTING SIZE OF LABOUR FORCE
1) Age Distribution: If majority of the population falls within the working population of 18 – 65 years, the labour force will be high. On the other hand, if majority are children or old age the work force will be low (0 -17 and 65 years and above).
2) Sex: Sex distribution of the population between male and female impacts the labour force. If majority are male the labour force will be high but if majority of the population are female the labour force will be low.
3) Education: When people spend more time on education and training, the labour force will be low as compared to small period of education and training; the labour force will be high.
4) Occupation: Depending on the type of occupation in which labour is required. The labour force for certain occupation is mostly small because it takes a long period of education and training e.g. a surgeon, an engineer, a lawyer etc. But, in an unskilled or semi-skilled occupation, the labour force is mostly high such as a driver, cleaner, gardener etc because it requires few period of training and education.
5) Immigration Law: A favourable immigration law will increase the labour force but a stringent immigration law will shrink the work force.
6) Size of a Population: Ceteris paribus, the greater the size of a population the greater the work force. India with a very large population will have a far greater labour force compared to Kenya.
7) Official Age of Retirement: A country with a higher retirement age will have a larger labour force. If Kenya’s retirement age is 55 and decides to raise it to 65, it will increase its labour force.
8) The Number of Disabled People: If the number of disabled population is high as a result of war, sickness or natural epidemics, the labour force will be low. If the number of disabled is small, the labour force will be high.