Question

Use your real-world experience to discuss what factors could potentially prevent the quantity supplied and the quantity demanded in the aggregate labor market. Please give two possible factors and show how they could stop the equilibrium in a framework of wage, quantity supplies and quantity demanded.

Answer 1

Two factors could potentially prevent the quantity supplied and the quantity demanded in the aggregate labor market

1. Education and training

A well-trained and educated manpower causes a rise within the demand for that labor by employers. increased levels of productivity at intervals the manpower can cause the demand for labor to shift to the correct. If the manpower isn't well-trained or educated, employers won't rent from at intervals that proletariat, since they're going to must pay a big quantity of your time and cash coaching that manpower. Demand for such can shift to the left.

2. Technology

Technology changes will act as either a substitute for or enhance labor. once technology acts as a substitute, it replaces the necessity for the number of staff leaders to hire. for example, word processing shriveled the number of typists required within the workplace. This shifted the demand curve for typists left. arise within the accessibility of bound technologies could increase the demand for labor. Technology that acts as a complement to labor can increase the demand for certain sorts of labor, leading to a rightward shift of the demand curve. for example, the increased use of data processing and the different code has increased the demand for info technology professionals who will resolve software and hardware problems associated with a firm’s network. a lot of and higher technology can increase demand for experienced staff who understand how to use technology to reinforce workplace productivity. Those staff who don't adapt to changes in technology can expertise a decrease in demand

Stop the equilibrium in a framework of wage, quantity supplied and quantity demanded

Modification within the quantity demanded of the product that the labor produces; a change in the production method that uses a lot of or less labor; and a change in government policy that affects the number of labor that companies want to hire at a given wage. Demand may alsoincrease or decrease (shift) in response to workers’ level of education and training, technology, the number of companies, and availability and worth of alternative inputs
The main factors that may shift the supply curve for labor are: however fascinating employment seems to employees relative to the alternatives, government policy that either restricts or encourages the number of employees trained for the duty, the number of employees within the economy, and needed education.