Introduction
Labor and market are essential factors when it comes to economics and business in general, as a factor of production human labor is characterized as the better form, we also have other labor, which is also essential to some extent. We will focus on humans as a major source of labor, which is viewed as input in the production process. Human labor is compelled or affected by the level of education, though education does not increase the productivity of either type of worker. Education only affects primary employment but production comes later which is determined by the hard work or production of the worker.
Market is one of the key factors in the business environment and is viewed as a place where producers, distributors, retailers sell, and consumers buy goods. The market offers more services like buying, selling, or even rendering of services, the main goal is to exchange money as a medium of transformation. We have direct types of markets depending on the goods or services that are offered, the online market, and the physical market. There are numerous factors affecting unemployment as a factor of economics, and business in general. These factors can be controlled and even reduced in some cases. Some of these factors are as follows: structural, frictional, technological, and cyclical unemployment.
Labor demand as another factor in the production chain, it relies on the labor market. Labor and market fall in the same demand as one relies on the other, this is pre-determined in the sector of economic activity and tends to affect an increase in labor demand. The potential effect of the minimum wage that is the negative effect of labor, the bargaining power in the labor force relies on the rate of production and demand in the market. Unemployment has made the human labor force to be replaced with machinery and hence there is less demand in the human labor force. The other factor that greatly influences the labor market is incentives that grant disability benefits to a bigger portion of the population, leaving out the majority.
Economic Growth
An increase in the production of economic goods and services is termed as economic growth; this rate should be measured with respect to a specific period. The gross national product is the key measure of economic growth; other standard measures can also be used depending on the economic activity of that place or country.
There are components of economic growth, which is an essential factor in determining and enabling an economy to grow and survives in the near future. These factors are as follows:
- Physical Capital or Organization.
- Law
- Population or Labor.
- Mortal Capital.
- Expertise
- Natural Resources.
They are related to one another with respect to the effect they bring to the current market, there are few ways to improve economic growth, these ways are based on the demand and supply in the given market. The main key to the development of economic growth is an increase in the number of goods in the economy.
Public Policy
The public policy enables the government to monitor and addresses the needs of the citizens, through is covered in the constitutions. This has an excessive influence on the economic sector of a state; it safeguards the whole system when it comes to business and specifically economic.
