Supply of labour
Supply of labour increases with the rise in wage rate. The supply curve of labour normally slopes upward to the right.
Factors affecting the supply of labour
Wage rate
In most cases the supply of labour will increase with the increase in wages. This is because more workers will be attracted by a higher wage rate and moreover the existing workforce may be willing to work overtime at a higher wage rate.
Size of the population
An increase in population will lead to an increase in supply of labour.
Social factors
With more and more women entering the labour market the supply of labour has increased in the recent times.
Working age
Lowering the working age of will increase the supply of labour. An increase in the retirement age will increase the supply of labour.
Educational requirement
Jobs which need special training or educational qualifications will see less supply of labour as compared to jobs which don’t need high level of educational qualification.
