(2) The labourer sells his services (labour) only, not himself:

A labourer (worker) sells his services only and not himself. When a worker sells his services (labour), he himself remains’ quite independent and retains his identity.

(3) Labour is an active factor of production:

Land and Capital are inactive factors of production because they cannot produce anything on their own, but is an active factor. This is because the labour is a living entity.

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(4) Labour is highly perishable:

A piece of land or a machine will not suffer any loss in itself, if it is not put to any use for a few days. But if a labour does not work for a day, his own day’s work will be lost forever.

(5) Labour has weaker bargaining power:

As compared to the employer the bargaining power of the worker is low. Firstly, labour is perishable. The worker opts to accept the low wages offered by the employer rather than go without work. Secondly, the economic position of the employer is stronger than that of the worker. Thirdly, due to illiteracy and other reasons, the workers are unorganised.

(6) Labour is less mobile:

The mobility of labour is not so easy. Even the most remunerative employment opportunities do not attract many trained personnel from other countries. This is due to the labourers sentimental attachment to his home and surroundings. The problem of language, social customs etc. are some other important factors affecting mobility of labour.

(7) Labours differ in efficiency:

Labourers are not homogeneous like tools and machines. One labour is not equally efficient like another.

Labourers differ in ability, skill, intelligence and training resulting in difference in wages from workers to workers.