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 consider 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.

Economic forces

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

Non-economic factors

These are social, national, demographic and legislative prerequisites that affect the supply and demand of 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.

First of all, the total number of people affects the demand and supply in the labor market. 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 significant factor on which the labor market supply depends is the number of the able-bodied population. It's about the part that has the necessary mental and physical abilities.

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 the qualitative characteristics 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 existence of migration processes for the able-bodied population. It implies the movement of citizens from one territory to another with a change of place of residence and work. In Russia, immigration led to the increase in the number of jobs on 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.