Quite a number of negative things slow down the pace of growth in almost all areas, some of these are the 5 factors that affect the labor market as an avenue for human growth. The fact that the labor market is an essential platform for human growth cannot be undervalued. It is in fact known to give educated or trained labor sense of purpose and responsibility.
But in recent years, the labor market is consistently being attacked by factors that seem beyond human control. These factors however have made it not only competitive and labyrinthine, but that they have also made human survival a hard nut to crack. Thus, poverty rises against the development of a whole nation.
In response to this, brilliant minds now look elsewhere. They have begun to have their minds picking other things, and their eyes fixed on other things. One major thing among these things is skill acquisition which is majorly concentrated on science and technology, being the most essential accessories of the future of man.
Although it is impossible that everyone will have to acquire skills for a career in the tech world, yet it is possible to know that there can be solutions to the problems posed by the competitiveness that becloud the labor market. The truth remains that, many will be embark on some career, while others will get jobs. We cannot deny nonetheless the fair value of getting skills in the midst of the troubles around.
What Factors Affect the Labor Market?
In order to solve this problems or troubles, this content has come up with first identifying the causes or factors that cause them. Here are then some 5 factors that affect the labor market:
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Labor Supply and Demand
The labor market refers to the supply of and demand for labor, for which employees provide the supply and employers provide the demand. It is a major component of any economy and is intricately linked to markets for capital, goods, and services.
In a broader sense, labor demand is defined as the amount of labor that employers seek to hire during a given time period at a particular wage rate. The demand for labor as a factor of production is a derived demand, in that labor is demanded not for its own sake but for its contribution to the production of goods and services. Thus it can bring about a serious problem when the supply is far more than the demand for it.
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Economic Regeneration Initiatives
Economic regeneration refers to the reinvigoration of local and regional economies, and associated improvements in economic competitiveness and prosperity. It is often linked with increased inward investment and the relocation of businesses and households in areas of decline.
Certainly, when wrong economic regeneration is put in place in a bid to tackle socio-economic problems, there will definitely be problems that come to bounce on the labor and largely the labor market without exception.
You Can Also Read:
Meaning of Unemployment, Types, Causes and Control
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Minimum Wage Policies
The purpose of minimum wages is to protect workers against unduly low pay. They help ensure a just and equitable share of the fruits of progress to all, but if it becomes that the policies guiding this becomes brutal and unfavorable to the labor with much gain to the employer, it is undoubted that problems will come about.
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Education and Instructional Programs
Mostly in countries where the educational programs are insufficient and unreliable and without the right resources or tools to educate the people, there will always be problems because this will cause a massive reduction (through migration to a better pasture where training facilities are on ground) in the number of skilled labor and of course increase in the number of unskilled or half-baked ones.
This too affect the labor market negatively!
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Working Populace
The working populace is the total population in an area that is considered able and likely to work based on the number of people in a predetermined age range. The working-age population measure is used to give an estimate of the total number of potential workers within an economy. In a case where the working populace is growing in redundancy, the issue serious unemployment will be clearly defined. Thus, we have a problem in our hands.
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