Question

Briefly discuss the major components of the aggregate labor supply

Answer 1

The labor market is defined as a place where the sellers and buyers for labor meet. The owners of labor are anyone who is willing and able to supply the service in exchange for compensation. It is evident that workers are comparable to sellers, while employers are comparable to the buyers. Labor market has four main components as explained below;
Labor Force Population
This is the number of people who are readily available for service delivery in the labor market. The population takes into consideration both skilled and unskilled workers, regardless of their industrial specialization (Dolton, 2018).The Population of Applicants This refers to the aggregate number of people who show an interest in a particular opportunity which they qualify for, through the application. When recruiting, organizations tend to analyze first the labor market, in a bid to get the suitable experts, for the set opportunity, hence making applicants population a critical component.
The Pool of Applicants
A pool of applicants is who takes an initiative of showing an interest in a particular opportunity, by sending their resume. Only those who have applied for a position, usually have the chance of their resumes being screened, before they are shortlisted. Response to the pool of applicants is dependent on the human resource policy of an organization.
The Selected Individuals
This is the last component of the labor market. These are the successful applicants who have been absorbed for the opportunity (Dolton, 2018). A number of predetermined factors influence the criteria for selection, and these criteria differ across organizations and professions