The utility of unlimited supplies of labour to growth objectives depends upon the amount of capital available at the same time. Should there be surplus labour, agriculture will derive no productive use from it, so a transfer to a non agriculture sector will be of mutual benefit. It provides jobs to the agrarian population and reduces the burden of population from land. Industry now obtains its labour. Labour must be encouraged to move to increase productivity in agriculture. To start such a movement, the capitalist sector will have to pay a compensatory payment determined by the wage rate that people can earn outside their present sector, plus a set of other amounts includes the cost of living in the new sector and changes in the level of profits in the existing sector. The margin capitalists may have to pay is as much as 30 per cent above the average subsistence wage, WW1 in figure which represents the capitalist sector is shown by N; OW is the industrial wage. Given the profit maximization assumption, employment of labor within the industrial sector is given by the point where marginal product is equal to the rate of wages, i.e. OM.