Labor

Labor refers to human effort used in the production of goods and services. It includes physical work and cognitive tasks performed by workers and is combined with capital, land, and entrepreneurship in most production processes. Labor is supplied by individuals through their willingness to work in exchange for compensation, such as wages or salaries.

Economically, labor is an input in the production function. The supply of labor depends on wages, education, demographics, and individual preferences; demand for labor depends on the demand for the final goods and services produced and on productivity. Wage levels help coordinate the quantity of labor supplied and demanded. Unemployment can arise from job search frictions, skill mismatches, or broader economic downturns. Growth in productivity and investment in human capital influence earnings and living standards.

Working conditions and rights: Most economies impose rules governing hours, safety, anti-discrimination, and minimum wages. Policies aim to protect workers from exploitation and to promote fair remuneration. International bodies, notably the International Labour Organization, work to establish standards and monitor abuses. Issues include child labor and forced labor, as well as concerns about gender pay gaps and precarious employment.

Labor movements and unions: Unions organize workers to negotiate contracts and advocate for improvements in wages, benefits, and workplace safety. Union presence varies by country and industry, and labor regulations shape their activities.

Labor in medicine: In obstetrics, labor refers to the process by which the uterus contracts and the baby is delivered. This is a distinct usage of the term and is unrelated to economic labor.