Labor Market EfficiencyMade by:- ASHUTOSH SHARMA

What is LABOUR MARKET EFFICENCY? The market in which workers find paying for work

employers and the employers find skilled and willing to work workers and a wage rate is defined in the same way as in a goods market in accordance to Demand & Supply. Efficiency in general describes the extent to which time, effort or cost is well used for the intended task or purpose.

The term "efficient" is very much confused

and misused with the term "effective". In general, efficiency is a measurable concept, quantitatively determined by the ratio of output to input. It is often used with the specific purpose of relaying the capability of a specific application of effort to produce a specific outcome effectively with a minimum amount or quantity of waste, expense, or unnecessary effort.

HOW THEY WORK????

• In the labour market, labour services are exchanged and

those negotiations occurring between buyers and sellers partly determine the placement of workers in jobs with specified wages, benefits, and conditions of employment.

• In the most basic terms, the supply of labour refers to the number of people currently working or actively seeking employment. The size of the labour supply is determined by the number of individuals of working age6 (the working-age population) as well as the proportion of the working-age population that wishes to work

How they choose??

Firms choose their staffing levels according to a number of factors, including:

• the cost of labour; • the productivity of the workforce; • the current and anticipated level of

production• the price that the firm can command for its

output

Labour market issues include :

• Unemployment • Participation Rates• Wages• Ageing workforce • Skill Gaps

Countries Covered

• USA• SINGAPORE• SWITZERLAND• CHINA• INDIA

(Source:World Economic Forum, Executive Opinion Survey)

Cooperation in labour-employer relations

Country Score Rank

Switzerland 6.1 1

Singapore 6.1 2

India 4.6 46

USA 4.8 36

China 4.5 51

How would you characterize labor-employer relations in your country? [1 = generally confrontational; 7 = generally cooperative]

Flexibility of wage determinationCountry Score Rank

Switzerland 5.7 18

Singapore 6 7

India 5.2 58

USA 5.5 32

China 5.3 52

How are wages generally set in your country? [1 = by a centralized bargaining process; 7 = up to each individual company]

Rigidity of employmentCountry Score Rank

Switzerland 7 10

Singapore 0 1

India 30 81

USA 0 1

China 31 82

Rigidity of Employment Index on a 0–100 (worst)

Hiring and firing practicesCountry Score Rank

Switzerland 5.8 3

Singapore 5.8 2

India 4 66

USA 5.1 8

China 4.3 44

How would you characterize the hiring and firing of workers in your country? [1 = impeded by regulations; 7 = flexibly determined by employers]

Redundancy costs(in weeks)

Country Score Rank

Switzerland 13 21

Singapore 4 6

India 56 93

USA 0 1

China 91 118

Pay and productivityCountry Score Rank

Switzerland 5.3 5

Singapore 5.5 1

India 4.3 39

USA 4.9 8

China 4.7 3

To what extent is pay in your country related to productivity? [1 = not related to worker productivity; 7 = strongly related to worker productivity]

Reliance on professional management

Country Score Rank

Switzerland 6 9

Singapore 5.4 11

India 4.5 53

USA 5.5 17

China 5.2 46

In your country, who holds senior management positions? [1 = usually relatives or friends without regard to merit; 7 = mostly professional managers chosenfor merit and qualifications]

Brain drainCountry Score Rank

Switzerland 6 1

Singapore 5.4 2

India 4.5 32

USA 5.5 3

China 5.2 33

Does your country retain and attract talented people? [1 = no, the best and brightest normally leave to pursue opportunities in other countries; 7 = yes,there are many opportunities for talented people within the country]

Female participation in labor forceCountry Score Rank

Switzerland .88 32

Singapore .74 82

India .42 130

USA .85 44

China .88 34

Ratio of female participation in the labor force (%) to male participation in the labor force (%)

That’s all we got for you