Job vacancies

Friday, April 20, 2012

maintaining structural unemployment is a balancing act

If a certain skill is scarce (supply is low) but much needed by employers (high demand), a worker with those skills has ample bargaining power as regards his/her wage. If there is a surplus of a certain skill (high
supply), which is not much in demand by employers, workers with those skills will have less
bargaining power and may experience unemployment., page 21

However it is better that everyone is skilled enough for their respective fields than there be a scarcity of labour in the labour market.

No comments:

Post a Comment

Pageviews past week