SECTION A: THE MARKET SYSTEM Part 3 The labour market: an example of a market in a mixed economy Chapter 13: The division of labour Edexcel International GCSE Economics

Getting Started… SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

Labour The working population – people available for work in a country. Is there an abundance of labour in many countries? Current unemployment rates SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

Labour vs other resources Why is labour the hardest resource to manage? People vs Robots People have complex needs, are emotional, can be disruptive, can be inconsistent. People need breaks, holidays, get tired, get ill, leave, have children, retire. SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

Specialisation and the division of labour Firms specialise in a narrow range of products Firms have specialised departments Countries/regions are known for specialisation (Zurich – finance, Basel – pharmaceuticals, Geneva – NGOs) What products do you associate with certain countries? SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

Specialisation and the division of labour South Africa - Gold China – manufactured goods India/Bangladesh – textiles UK – good music, excellent teachers Saudi Arabia – oil Ivory Coast, Ghana – cocoa Italy – fashion The Netherlands - tulips SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

Specialisation and the division of labour Division of labour - breaking down the production process into small parts with each worker being allocated a specific task. https://www.youtube.com/watch?v=G-R01fJiuTg https://www.youtube.com/watch?v=QW8ExNMAKU8 SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

Question 1 – Regional specialisation – pg 54 (a) Valencia is the only region in Figure 2 that produces toys. (b) The Rioja region specialises in the production of food and wine. This means that most people in the area will be farmers or wine producers. People may be employed as labourers on farms or in vineyards. A minority are likely to be specialists, such as tractor drivers or tasters and carry out some specialised tasks for farm owners and winemakers. (c) The main reason why the Rioja region only specialises in the production of food and wine is because the resources there, land in particular, are favourable for such production. The soil type and climate may be very suitable for growing crops and producing wine. Another reason may be that the region is not able to produce anything else. It may be starved of the necessary resources, to produce cars, for example. SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

Division of labour - ADVANTAGES For the worker Become an expert – practice makes perfect Become more employable Highly skilled = more money Continue to develop skills Job satisfaction if working in a highly-skilled profession. SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

Division of labour - DISADVANTAGES For the worker BOOOOOORRRRRRIIIIIIINNNNGGGGG Very repetitive, can require little skill http://www.bbc.com/news/magazine-36902572 Risk of unemployment automated production using machines, robots. Reduced demand for that skill UK – shipbuilding, mining, textile production SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

Division of labour - DISADVANTAGES For the firm Bored workers can... be poorly motivated, produce poor quality work have poor punctuality, attendance leave the firm (high staff turnover) become alienated, try and avoid work This all reduces productivity and can affect profitability. One stage of production having problems can produce a knock-on effect to other stages (Interdependence) Lack of flexibility – if a highly-specialised worker is absent or leaves there might be no one to replace them. SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

Motivation How can workers be kept motivated? Creative a Positive Work Environment Set Goals Provide Incentives Recognize Achievements Share Profits Ask for employee Input Provide Professional Enrichment SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

Economics in practice – AF Devereux SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

Chapter Review: ActiveBook Chapter 13 quiz SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour

Key words – Resolving scarcity Division of labour Specialisation Working population Add these to your Key words glossary and learn them!! SECTION A: The Market System | Part 3: The labour market: an example of a market in a mixed economy | Chapter 13: The division of labour