Labour market condition and its relation with turnover
Labour market and turnover interrelation
In a labour market the conception of economics surplus and shortage can be discuss. Surplus is the condition when the priduct in market offered by producer is more higher than demand of the product. Oppositely, demand of the product if exceed than the product in market offered to sell is called shortage. In labour market both of the two condition may be arise. Labour shortage and labour surplus may happen. When in labour market the labour will be surplus condition, the number of job candidate if exceed the employers need, the value of labour tends to down. Employer wants to purchase the product in low price. Tendency of termination is increases. Because there have a lot of people waiting for job.
surplus of labour force
When the labour force existing in labour market is more than the employers need than the existing demand of labour in market. The excessive level or frequency of recruitment seems to that the labour force in labour market is more in number than normal. The exessive level of requitment is due to hairing most valuable and skills to to the organization, for it if possible the termination of the lowest skilled employees. It is a filtration techniques of employers. In this moment the rate of the resig ation is also increase, because of low value of them to the employer and the changing strategy of the employer most of the employees are choose resignation. Most of the employees are fou d in this situation that they have leave their traditional job and they have started a new business in such kinds of situation. I the labour shortage condition in market the turnover rate significantky reduce. Significantly the termination rate and resignition rate is reduces. It is due to in shortage stage of labour in market the employees are given more value from the employers. Hence, resignation rate is reduces. Termination must have to reduces.
The state and university provided education system impacts on labour market directly. Because, the student who is about to completing his as usual education, he is about to becoming the compone ts of labour market. A strong education system can build a strong labour market. A strong labour market can also impacts on turnover rate.
surplus and shortage relation of labour on turnover
When labour is in surplus condition the turnover by employer rate is increases and when the labour is in shortage condition the turnover by the employer is reduces.