BSBHRM513 Manage workforce planning-with 100% verified answers-2022
Assessment 1
1. Explain how the level of competition between companies may affect the supply of workers in your industry.
Factors that can shif
...
BSBHRM513 Manage workforce planning-with 100% verified answers-2022
Assessment 1
1. Explain how the level of competition between companies may affect the supply of workers in your industry.
Factors that can shift the demand curve for labor include: a change in the quantity demanded of the product that the labor produces; a change in the production process that uses more or less labor; and a change in government policy that affects the quantity of labor that firms wish to hire at a given wage. Demand can also increase or decrease (shift) in response to: workers’ level of education and training, technology, the number of companies, and availability and price of other inputs.
2. Explain how the levels of unemployment may affect the supply of workers in your industry.
If we use wage inflation, or the rate of change in wages, as a proxy for inflation in the economy, when unemployment is high, the number of people looking for work
significantly exceeds the number of jobs available. In other words, the supply of labor is greater than the demand for it.
With so many workers available, there's little need for employers to "bid" for the services of employees by paying them higher wages. In times of high
unemployment, wages typically remain stagnant, and wage inflation (or rising wages) is non-existent.
In times of low unemployment, the demand for labor (by employers) exceeds the supply. In such a tight labor market, employers typically need to pay higher wages to attract employees, ultimately leading to rising wage inflation.
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