Definition of Labor

Definition of Labor

The term that occupies us is sustained, etymologically speaking, in Latin. Thus, we find the fact that the word hand comes from the Latin word manus that can be translated into several meanings such as "easy to manipulate". And it works, for its part, emanates from the Latin word operathat means "work".

Labor is known as the physical and mental effortthat is applied during the process of making a good . The concept is also used to point to the cost of this work (that is, the money that is paid to the worker for his services).

For example: "We have to hire more labor to complete production" , "Labor has risen so much that the business is no longer profitable" , "The manager is angry with the workforce hired to complete the works" .

Currently, worldwide, one of the most damaging problems 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 perform a job for minimum wages which negatively affects the entire group of workers in the sector in particular, who see how they do not get a job because there are those who decide to perform the same for much lower prices than those stipulated legally.

A circumstance that is favored, in many countries, by entrepreneurs who take advantage of the arrival of immigrants in their territory willing to earn money at all costs.

In the field of business accounting , labor is understood as the absolute cost linked to workers . In this sense, labor includes salaries, social security contributions and taxes: "Metronplak has spent more than half a million dollars in labor" , "The budget includes expenses in materials and labor" , " Almost 90% of the expenses are spent on labor . "

It should be noted that labor can be classified as direct or indirect. It is said that labor is direct when it directly influences the manufacture of the finished product. It is a job that can be easily associated with the good in question.

The labor is considered indirect , however, when booking to administrative, logistical or commercial areas. Therefore, it is not assigned directly to the manufacture of the product nor does it have great relevance in the price of the product.

In the production of a car, the direct labor is given by the workers who work in the assembly and assembly of each piece of the vehicle, while indirect labor includes those who perform in marketing and sales.

However, although these two types of labor are the most frequent, we can not ignore what is the commercial labor that is that which arises from what is the construction or commercial area of ​​an industry or deal.

And all this without forgetting that there is also what is known as labor management that is the term used to encompass all workers who occupy managerial and executive positions in a given company.