Labour Markets

Question 1

What are 3 causes of a shift in the supply of labour

Answer 1

1) Increased Migration
2) Investment in human capital (education and training)
3) Decrease wages in substitute jobs

Question 2

What are 3 causes of shift in Labour demand for an industry

Answer 2

1) An increase in labour productivity ( making labour more efficient than capital)
2) A change in the cost of capital equipment
3) An increase/ fall in demand for the goods or service ( more/ less labour needed)