Demand for Labor Report
June 14, 2014
Demand of labor is a concept that identifies specifically the amount of demand that a firm or the established economy is willing to employ at a given point in time. The common determining factors of demand of labor are; the amount of labor employees are willing to supply at that particular wage, the real identified wage, and the actual payments the firms are willing to pay for this particular labor.
However, due to subsequent increase in the market wages for the demand of labor, more workers are seen to enter the market workforce enhancing more productivity. Ideally, high labor cost however is expensive ...view middle of the document...
Technology also necessitates computerizations of activities leading to reduction of workers who usually work on the respective sites, (Görge, 2004).
Changes in product demand
Price of final products changes often due to change in demand. This change also leads to absolute increase in demand for the factors that produce the products. However, a reduction in a demand for a product leads to a reduction in its price and thus leading to absolute reduction of factors of production, (Saint-Paul, 1992).
Changes in the number of Firms
The demand curve can be established by incorporating demand for the specified factor for the firm utilizing it. When a number of organizations incorporate the factor the demand curve will shift to the right. The demand curve also shifts to the left when the number of firms decreases.
Graph indicating how demand for the occupation will change over the next 5-10 years.
Business managers should have solid knowledge of factors that affect the demand of resources so that it will enable them to advance in implementing the use of technology in the firm. Use of computers however improves...