Characteristics of labour as a factor of production :
(i) Labour is an active factor of production. Without labour, other factors of production such as land and capital cannot produce anything. Labour is a living organism which requires sympathetic treatment.
(ii) Labour cannot be separated form the labourer, because the labourer will have to be present at a workplace where work is going on. The worker and the service rendered by a worker go together. She/ he cannot sell labour like land and capital.
(iii) Labour is Perishable which cannot be stored. If a worker does not work on a particular day, her/his labour is wasted. The labourer has to sell his labour immediately, irrespective of the prices paid in terms of wages. Hence, labour has a weak bargaining power.
(iv) Human factor - Labour is human factor. Hence, several human considerations are to be kept in mind while dealing with the labour, such as moral considerations, ethical considerations, devotion, motivation (including incentives), family background etc.
(v) All labourers are not equally efficient. Labour can improve its efficiency by investing capital on worker's education and training and providing proper working environment and incentives.