The idea of labor refers to the physical and mental effort that is applied in a productive process or work activity.
The expression labor is based, etymologically speaking, on Latin. Thus, we find the fact that the word hand comes from the Latin word manus , which can be translated into various meanings such as "easy to manipulate." And work , for its part, emanates from the Latin word opera which means "work."
The physical and mental effort that is applied during the process of manufacturing a good is known as labor . The concept is also used to point out the cost of this work (that is, the money paid to the worker for their services).
For example: "We have to hire more labor to complete production" , "The labor force has increased so much that the business is no longer profitable" , "The manager is angry with the labor hired to complete the works" .
cheap labor
Currently, worldwide, one of the problems that causes the most damage to the labor market is what is known as cheap labor . With this term, what is defined is all those people who are willing to do a job for minimum wages, which has a negative impact on the entire group of workers in the sector in particular, who see how they cannot get a job because there are those who decide to do the same for prices much lower than those stipulated legally.
This is a circumstance that is favored, in many countries, by businessmen who take advantage of the arrival of immigrants to their territory willing to make money at any cost.
In the field of business accounting , labor is understood as the absolute cost linked to workers . In this sense, labor includes salaries, social charges and taxes: «Metronplak has spent more than half a million dollars on labor» , «The budget includes expenses on materials and labor» , « Almost 90% of expenses are allocated to labor .
Labor can be classified as direct or indirect.
Classification according to type
It should be noted that labor can be classified as direct or indirect. Labor is said to be direct when it directly influences the manufacturing of the finished product. This is work that can be easily associated with the good in question.
Labor is considered indirect , however, when it is reserved for administrative, logistical or commercial areas. It is not assigned, therefore, to the manufacturing of the product directly nor does it have great relevance to its price.
In the production of a car, direct labor is provided by the operators who work on the assembly and assembly of each part of the vehicle, while indirect labor includes those who work in marketing and sales.
However, although these two types of labor are the most frequent, we cannot ignore what commercial labor is, which is that which arises from what is the construction or commercial area of an industry or business.
And all of this without forgetting that there is also what is known as management workforce , which is the term used to encompass the group of workers who occupy managerial and executive positions in a given company.