The classical definition of the concept of “labor” comes down to the totality of a person’s ability to work (mental and physical). In statistics, labor refers to the number of people employed or ready for such work. In different countries, this indicator is calculated a little differently, usually the number of working and officially registered unemployed is taken.
In the language of literature and journalism, the workforce is manual workers employed in low-skilled jobs, that is, the working class. This includes both self-employed and compulsory recruits (e.g. slaves or prisoners).
Under the conditions of a capitalist social system, labor is a commodity (with all its inherent attributes), but the commodity is specific. Its difference from other products is as follows:
1. It creates a value greater than it costs itself (more precisely, than it is estimated). Additionally created value is called surplus and is the basis of profit.
2. This production requires absolutely any production, without it it is impossible.
3. The level of efficiency of using the means of production and the entire economic structure as a whole depends on the competent use of a given product (labor force).
The cost of labor consists of factors such as the ratio of the number of employed and unemployed, the industrial sector of the enterprise, the degree of economic development of the region, etc. The carriers of the labor force are its owners, legally they can freely dispose of it. But, having no means of production, the owners of the labor force sell it as a commodity. In this case, its value is determined by the sum of the costs of maintaining the necessary standard of living and working capacity of the employee, as well as his training and reproduction.
These costs vary significantly in countries with different economic and climatic conditions, depending on the complexity and intensity of labor and many other factors. The price of labor is a quantitative reflection of its value and is expressed in wages.
In the aggregate, the labor force of any enterprise (i.e., the payroll of its employees) includes those actually working, as well as absent for various reasons (illness, business trip, regular or study leave, etc.), but consisting in labor relations with the enterprise.
The payroll may include non-industrial unit personnel and production personnel (directly engaged in production activities and servicing production needs). The latter, in turn, consists of workers (engaged in the actual production of products, repair of equipment, loading and unloading), specialists (engaged in accounting and control of products, paperwork, etc.) and managers at various levels (director, manager, shop manager, manager).
The number of employees of any enterprise is constantly changing, that is, there is a movement of labor and its redistribution between enterprises, as well as industries and entire regions. Analysis of the movement of labor is carried out by the absolute and relative indicators of its turnover.
Absolute indicators - turnovers for admission and retirement, equal respectively to the total number of accepted and dismissed for a certain period. Relative indicators are the coefficients of turnovers for acceptance and retirement. It also takes into account the degree of turnover of the labor force (due to dismissals of their own free will or for other reasons), measured using the coefficient of turnover.
Also used is the replacement rate. With its value greater than unity, not only the personnel lost during the dismissal are replenished, but also new jobs are created. When the value of this coefficient is less than unity, jobs are reduced , which indicates an increase in unemployment.