1.3. Access to Labour Supply

Labour supply is an important factor in the location of industries. Two aspects of labour are important for the location of industry. First, the availability of cheap labour in large numbers and second, the level of their skills. For labour intensive industries, cheap labour should be available. Skilled labour is costly but their efficiency and skill compensate for the higher wages. Some industries are located at a particular place due to the availability of skilled labour like electronic industry in Japan, glass industry in Ferozabad (Uttar Pradesh) and utensil industry in Jagadhari and Moradabad.

Labour is more mobile than other factors of production. It can be moved from villages to towns, from towns to metropolis, from one industry or place to another or even from one country to the other country. This mobility is namely ascribed to differential wage rates in different situations.