1. Labour Is Inseparable from the Labourer
- Labour cannot be detached from the individual providing it—it is a personal service.
- Unlike land or machinery, labour is not a transferable asset.
2. Labour Is Perishable
- Labour cannot be stored for future use.
- If a worker does not work today, the opportunity is lost forever.
3. Labour Is Heterogeneous
- Each worker is different in terms of physical strength, skills, education, experience, and productivity.
- This diversity affects output quality and wage differences across workers.
4. Labour Has Limited Mobility
- Labour can move geographically or between industries, but not always easily.
- Barriers include family ties, language, skill mismatches, and cultural differences.
5. Labour Supply Is Time-Bound
- Human labour is limited by hours in a day, physical stamina, and legal work time regulations.
- Workers can only contribute a fixed number of productive hours per day or week.
6. Labour Is a Human Effort
- Labour involves physical or mental exertion to produce goods and services.
- It is influenced by human factors such as motivation, fatigue, health, and morale.
7. Labour Is Not Standardized
- Unlike machines or raw materials, human labour cannot be perfectly uniform.
- Output varies even among workers performing the same task due to individual differences.
8. Labour Has Diminishing Returns
- As more units of labour are added to a fixed amount of capital or land, marginal productivity eventually decreases.
- This is a key principle in short-run production theory.
Labour’s Human Traits Define Its Economic Behavior
Labour differs significantly from other factors of production due to its human nature. Understanding its unique characteristics is essential for managing human resources, setting fair wages, and designing policies that support a productive and equitable labour market.