LABOUR

Goods and services cannot be produced without human effort. Labour can be defined as the exercise of human mental and physical effort in the production of goods and services. It includes all human effort exerted with a view to obtaining reward in the form of income. The efforts of coal miners, rubbish collectors, professional sportsmen, civil servants, central bankers, engineers, accountants and university lecturers are all classified as labour.

The quantity of labour depends on the size of the population and the proportion of the population that is willing and able to work. The latter, in turn, depends on factors such as the age and gender distribution of the population. The proportion of children, women and elderly people all affect the available quantity of labour, which is called the labour force.

The quality of labour is usually more important than the quantity of labour. The quality of labour is usually described by the term human capital which refers to the skill, knowledge and health of the workers. Education, training and experience are important determinants of human capital.

South Africa has a fairly large population but the quality of the South African labour force leaves much to be desired. There is an oversupply of unskilled workers but a severe lack of highly-skilled workers which impedes the growth of the economy.