---
entity_slug: demand_for_labour
evaluator: null
evaluated_at: '2026-02-23T05:05:36.113031'
overall_score: 4.4
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly identifies demand for labour as the need for workers
    that increases with revenue and stock, and explicitly states it regulates production
    of men like any other commodity. While comprehensive, the phrase "various employments"
    could be more specific about what constitutes different types of labour demand.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Book I, Chapter 8 of The Wealth
    of Nations, where Smith explicitly discusses how demand for labour increases with
    national wealth and regulates wages. The definition accurately reflects Smith's
    actual argument about labour demand as a key economic mechanism.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"General Theory" is the correct domain placement as demand for labour
    represents a fundamental theoretical principle that underpins Smith''s broader
    analysis of wage determination and economic growth. This is clearly a core theoretical
    concept rather than a specific application or institutional arrangement.'
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance as it could map to S1 (primary
    operations of labour allocation) or S4 (intelligence about environmental labour
    needs). However, it's somewhat abstract as a general economic force rather than
    a specific organizational function or information flow.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides excellent explanatory value by illuminating the
    fundamental mechanism that Smith argues drives wage variations across time and
    place. It reveals the structural relationship between national wealth accumulation
    and labour market dynamics, making it a key explanatory concept rather than merely
    descriptive.
---

# Evaluation: Demand For Labour

## definition_precision — 4.0 / 5.0

The definition clearly identifies demand for labour as the need for workers that increases with revenue and stock, and explicitly states it regulates production of men like any other commodity. While comprehensive, the phrase "various employments" could be more specific about what constitutes different types of labour demand.

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Book I, Chapter 8 of The Wealth of Nations, where Smith explicitly discusses how demand for labour increases with national wealth and regulates wages. The definition accurately reflects Smith's actual argument about labour demand as a key economic mechanism.

## domain_placement — 5.0 / 5.0

"General Theory" is the correct domain placement as demand for labour represents a fundamental theoretical principle that underpins Smith's broader analysis of wage determination and economic growth. This is clearly a core theoretical concept rather than a specific application or institutional arrangement.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance as it could map to S1 (primary operations of labour allocation) or S4 (intelligence about environmental labour needs). However, it's somewhat abstract as a general economic force rather than a specific organizational function or information flow.

## explanatory_value — 5.0 / 5.0

This entity provides excellent explanatory value by illuminating the fundamental mechanism that Smith argues drives wage variations across time and place. It reveals the structural relationship between national wealth accumulation and labour market dynamics, making it a key explanatory concept rather than merely descriptive.
