There are factors without which the concept of production would not make sense, and these are factors affecting the volume of production. Factors of production efficiency are quite diverse, since there are a great many resources for it. There are three main groups of factors: land, labor and capital. Water, forests, fields, minerals, etc., that is, something given by nature or created by man (for example, drained swamps) is land.
Labor as a factor of production is also a heterogeneous concept, in the complex meaning the combined efforts of people. Since there are a lot of professions and specialties, and each of them requires specific knowledge and skills, appropriate training is needed to obtain them. Training allows you to acquire this knowledge and improve your existing qualifications. The population capable of laboring is called the labor force. For Russia, the labor force consists of men (18-60 years old) and women (18-55 years old).
Labor as a factor of production is very important and relevant, because it means the participation of man in the production process, the use of his own energy and potential. The basic elements of labor include objects of labor, means, and expedient human activity. The main results of labor: economic benefits, human development (physiological and mental), human living conditions, accumulation of knowledge and experience.
Labor is not just an engine of progress, labor is the basis of human existence and life, because under its influence the brain develops, speech, experience accumulates, and skills are improved.
Labor as a factor of production has content and character. The content distinguishes between low-skilled, middle-skilled and highly skilled labor.
Labor has quantitative and qualitative characteristics. Qualitative characteristics - this is the level of qualification of employees, quantitative - this is the cost (number of employees, labor intensity, working time). The more time it takes to educate and train a specialist, the more qualified he is.
In order to determine the nature of labor, it is necessary to conduct a thorough analysis of the combination of labor and means of production, to clarify who and in what quantities assigns the results of labor. With this in mind, three main social types of labor are distinguished : free, hired, and forced. Forced labor is forced labor (slave labor). Currently, the first two types of work are found.
Free labor is voluntary. This is self- employment , when the owner and employee act in the same person. A typical example of such an activity: an entrepreneur, a farmer, etc. If the labor activity is hired, it means that the employer and employee are different people, their relations are formalized by an employment contract, sometimes by agreement or contract, and based on the results of the work, the employee receives a certain monetary compensation.
For a long time, the debatable question was whether labor acts as a factor of production or is it labor. Physical, mental and intellectual abilities of a person is a labor force. If the employer is interested in a person’s ability to work, then the labor factor is a factor of production. If the length of working time is important to him, then this is labor. In order to work efficiently, a person must have certain health, abilities and skills, it follows that labor exists before the start of the labor process.
Labor productivity is the ratio of the result of labor (the number of products produced) in a certain period of time. Labor productivity, in turn, depends on a number of factors that can affect it.