Meaning of labour as a factor of production with features/characteristics.

 Labour- factor of production... 

In common sense, work performed by people only physically is called labour. It means only manual work comes under the category of labour. But in economics, every type of activities performed by people either physically or mentally is called labour. For example: work performed by teachers, doctors, pilot, engineers, carpenters etc. 

        Following are the features/characteristics of the labour: 

1. Active factor of production: Other factors of production depend upon labour for their productivity so it's an active factor. Because other factors are brought into the production process only by the labour. 

2. Perishable factor: Labour is more perishable than other factors of production. It can neither be restored not postponed nor accumulated for the next day. Today's labour must be rendered today otherwise it will be perish. 

3. Mobile factor of production: Labour is a mobile factor of production. It can be transported from one place to another. 

4. Labour can't be separated from labour: Labour is inseparable from the worker. The labour has to go personally to put in labour. 

5. Inelastic supply in short run: With the demand, the supply of labour can be increased or decreased immediately. It takes time to increase the supply of labour so it's inelastic in supply in short run. 

6. Low bargaining power: Labour has weak bargaining power because it is perishable. Labour are generally poor. They have to render wage offered to them. 

7. Labour is both producer and consumer: In one side, labour helps in production of goods and services but in other side, it also consumes the other goods and services. So labour is both producer and consumer.