direct labour

direct labour

1. that part of the labour force in a firm which is directly concerned with the manufacture of a good or the provision of a service. Direct labour cost depends on the hours of labour worked by factory operatives engaged directly in making a product. Provided that wage rates remain constant then direct labour cost will tend to vary exactly with output. See VARIABLE COST, STANDARD COST.
2. workers employed directly by local or central government to perform tasks rather than such tasks being contracted out to private-sector companies. See CONTRACTING-OUT, INDIRECT LABOUR.

direct labour

1. 1that part of the labour force in a firm that is directly concerned with the manufacture of a good or the provision of a service. Contrast INDIRECT LABOUR.
2. workers employed directly by local or central government to perform tasks rather than contracting out such tasks to private-sector companies. For example, a local authority might employ its own permanent construction workers to repair council houses rather than putting such repair work out to local firms. See VARIABLE COST, PRIVATIZATION.