1. Labour Economics Persaud April 6, 2013

2. Labour as a Resource The demand for labour is viewed in the same way as the demand for goods and services How do we figure out how much labour we need in the market place? Workers are the suppliers, business firms are the consumers and the price is the wage rate

3. Demand for Labour Direct Demand o Can be looked at as the demand for goods and services. o Directly use our dollars to indicate how much we want the goods/service (utility) at every price level. Derived Demand o Derived or dependent on consumer demand for the good or service. o In other words, the greater the quantity demanded of a good or service, the greater the quantity of labour demanded to produce it.

4. Productivity Important concept when looking at the labour market. Not just important to know how much of a product is demanded, the labour market is also affected by how MUCH each worker can produce in a specified period of time.

5. Marginal revenue product of labour (MPRL) Explains how demand for labour is derived As an additional unit of labour is added to a firm’s productive process, the additional output that is created is known as the marginal product. See page 172 in your text books Fig. 8.1

6. Factors that shift the labour demand curve There is a change in quantity demanded as the price of labour changes Factors that may shift the labour demand curve: o Change in the demand for the product of labour. (e.g. if there is a decrease in demand for cars, then the demand for auto workers will decrease) o A change in the price of other productive resources If it is cheaper to use automation in a factory, the demand for the factory workers will decrease o A change in worker productivity If workers are more productive, then the demand for them will increase – better worker training and/or better management

7. Supply of Labour Number of people willing to offer their services to firms at each of the possible wage rates As wages increase, more people are willing to offer their services in the labour market. Considerations that affect the supply curve: - specific skills – eg doctor - geographic location – remote area fewer people - jobs that seem unpleasant/dangerous – fewer people willing offer their services

8. Factors that shift the labour supply curve Changes in the income tax rates – more taxes, less workers Changes in size and composition of the population o Age distribution ex. Changes in household technology – more free time to enter the workforce Changes in attitudes around work – women, gen x

9. Unemployment Rate as an Economic Indicator Unemployment Rate : the % of the labour force who are not working but are actively seeking employment On board calculation.

10. Timeline

11. Date 1Date 2Date 3Date 4 Timeline

12. Date 1 Date 2 Date 3 Date 4 Timeline

13. Video : Generation Jobless CBC Doc Zone

14. http://www.cbc.ca/doczone/episode/generation-jobless.html

15. Looking Ahead When is the next milestone? What are the expected deliverables? Known risks and issues o What is the investigation timeline for these issues? What are the immediate next steps?

16. Dependencies and Resources Project Vendors Manufacturing Sales Engineering Remote Teams

17. Appendix

18. Budget Design documents Marketing plan Supplemental documents Contact information