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Sample Article Review Paper on Labour Market

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Sample Article Review Paper on Labour Market

The article is about labour market which is a topic in microeconomics and affirms that for too many people, the job market is actually not working (Betsey n.pag). The article confirms that Unites States economy is characterized by many people who are not working and are not even interested in finding work, this happens despite the economy experiencing job growth (Betsey n.pag). It is clear that in any economy most people may not participate in labour market purely because of lack of proper and requisite education qualification like Bachelor degree. Significantly, occupational licensing has also been one of the barriers to employment; this is because such procedures subjects people to lengthy and cumbersome processes before getting into employment, this discourages many individuals.

In microeconomics labour supply comes from individual choices and the time they allocate for work, it is affirmed that as real wage increases then individuals and households supply more working hours to the market and promote participation in the labour market. This has an effect of increasing supply of labour to the market including workers in industries, firms and business enterprises. Notably, the labour supply curve is often shifted by alteration in wealth meaning that a wealthier household would supply less labour to the market at a given real wage. Moreover, demands for labour comes from firms and as real wage increases, marginal cost of hiring workers increases and firms will try to limit their labour demand or limit working hours. On the other hand, if people become more productive then the shift is likely to shift to the right revealing that demand for labour would considerably increase at a given real wage.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Work cited

Betsey Stevenson. United States Economy: For Too Many, the Job Market Isn’t Working.

Bloomberg, 2016. Web. Retrieved November 10, 2016. Available at: https://www.bloomberg.com/view/articles/2016-07-08/for-too-many-the-job-market-isn-t-working

 

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