Labour market is defined as a market which workers and employers are brought into contact and conditions of work are decided.  It is made up of people who are looking for job, employers and government.

                                          THE CONCEPT OF LABOUR FORCE

Labour force can be defined as the total number of people of working age in a country who are gainfully employed and those who fall within the age bracket, capable and willing to work by law but have no work to do in a country at a particular period of time.

Labour force is the working population and it comprises all persons who have jobs and who are seeking for jobs in the labour market.  They are between the age of 18 years and 60 years.  Working population varies from one country to another.

FACTORS AFFECTING THE SUPPLY OF LABOUR OR SIZE OF LABOUR FORCE (WORKING POPULATION)

1. THE SIZE OF POPULATION: The higher the size of the population, the higher the working population and vice versa.
2. OFFICIAL SCHOOL LEAVING AGE: If the school leaving age is low, the proportion of labour force will be high and vice versa
3. OFFICIAL AGE OF RETIREMENT: If the age of retirement is raised the supply of labour will tend to increase because more people will be available for work
4. LEVEL OF REMUNRATION OR THE WAGE RATE: The extent of salaries, wages and other remunerations paid to the workers determines the number of people who may be willing to work.
5. MIGRATION: Immigration will increase and emigration will decrease the supply of labour.