The document discusses labor market efficiency. It defines labor market efficiency as workers finding paying work and employers finding skilled workers willing to work, with a wage rate determined by supply and demand. Labor market efficiency involves workers and employers negotiating job placements, wages, benefits, and conditions. Key factors that determine a firm's staffing levels are the cost of labor, workforce productivity, production levels, and output prices. Common labor market issues include unemployment, participation rates, wages, aging workforces, and skill gaps. The document then provides data on labor measures like cooperation, wage determination flexibility, hiring/firing practices, redundancy costs, pay/productivity linkage, reliance on merit-based management, brain drain, and female participation in several countries

1. Labor Market Efficiency
Made by:- ASHUTOSH SHARMA

2. What is LABOUR MARKET EFFICENCY?
The market in which workers find paying for work
employers and the employers find skilled and
willing to work workers and a wage rate is
defined in the same way as in a goods market in
accordance to Demand & Supply. Efficiency in
general describes the extent to which time, effort
or cost is well used for the intended task or
purpose.

4. The term "efficient" is very much confused
and misused with the term "effective". In
general, efficiency is a measurable concept,
quantitatively determined by the ratio of
output to input. It is often used with the
specific purpose of relaying the capability of a
specific application of effort to produce a
specific outcome effectively with a minimum
amount or quantity of waste, expense, or
unnecessary effort.

6. HOW THEY WORK????

7. • In the labour market, labour services are exchanged
and those negotiations occurring between buyers
and sellers partly determine the placement of
workers in jobs with specified wages, benefits, and
conditions of employment.
• In the most basic terms, the supply of labour refers
to the number of people currently working or
actively seeking employment. The size of the labour
supply is determined by the number of individuals of
working age6 (the working-age population) as well
as the proportion of the working-age population
that wishes to work

8. How they choose??
Firms choose their staffing levels according to a
number of factors, including:
• the cost of labour;
• the productivity of the workforce;
• the current and anticipated level of
production
• the price that the firm can command for its
output

10. Labour market issues include :
• Unemployment
• Participation Rates
• Wages
• Ageing workforce
• Skill Gaps

12. Countries Covered
• USA
• SINGAPORE
• SWITZERLAND
• CHINA
• INDIA
(Source:World Economic Forum, Executive Opinion Survey)

13. Cooperation in labour-employer
relations
Country Score Rank
Switzerland 6.1 1
Singapore 6.1 2
India 4.6 46
USA 4.8 36
China 4.5 51
How would you characterize labor-employer relations in your country? [1 = generally
confrontational; 7 = generally cooperative]

14. Flexibility of wage determination
Country Score Rank
Switzerland 5.7 18
Singapore 6 7
India 5.2 58
USA 5.5 32
China 5.3 52
How are wages generally set in your country? [1 = by a centralized bargaining
process; 7 = up to each individual company]

15. Rigidity of employment
Country Score Rank
Switzerland 7 10
Singapore 0 1
India 30 81
USA 0 1
China 31 82
Rigidity of Employment Index on a 0–100 (worst)

16. Hiring and firing practices
Country Score Rank
Switzerland 5.8 3
Singapore 5.8 2
India 4 66
USA 5.1 8
China 4.3 44
How would you characterize the hiring and firing of workers in your country? [1 =
impeded by regulations; 7 = flexibly determined by employers]

17. Redundancy costs(in weeks)
Country Score Rank
Switzerland 13 21
Singapore 4 6
India 56 93
USA 0 1
China 91 118

18. Pay and productivity
Country Score Rank
Switzerland 5.3 5
Singapore 5.5 1
India 4.3 39
USA 4.9 8
China 4.7 3
To what extent is pay in your country related to productivity? [1 = not related to
worker productivity; 7 = strongly related to worker productivity]

19. Reliance on professional management
Country Score Rank
Switzerland 6 9
Singapore 5.4 11
India 4.5 53
USA 5.5 17
China 5.2 46
In your country, who holds senior management positions? [1 = usually relatives or
friends without regard to merit; 7 = mostly professional managers chosen
for merit and qualifications]

20. Brain drain
Country Score Rank
Switzerland 6 1
Singapore 5.4 2
India 4.5 32
USA 5.5 3
China 5.2 33
Does your country retain and attract talented people? [1 = no, the best and brightest
normally leave to pursue opportunities in other countries; 7 = yes,
there are many opportunities for talented people within the country]

21. Female participation in labor force
Country Score Rank
Switzerland .88 32
Singapore .74 82
India .42 130
USA .85 44
China .88 34
Ratio of female participation in the labor force (%) to male participation in the
labor force (%)

22. That’s all we got for
you