Grade 8 C
" Discuss how a government might influence the demand for and the supply of labour."
Time Duration for submitting the Article is
Aug 5th to August 11th, 2013
Write your answer here in 500 Words.
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Government is a major employer in many countries, often employing the labour of many workers. Because it is such a major source of demand for labour it is able to exert a big influence over the market wages rate for different occupations in different areas. Government intervene in labour market to protect the rights of employees and employers: employment laws and workplace health and safety regulations have been introduced in many countries not only to give employers and workers certain rights, but also to make them responsible for observing the rights and responsibilities in each other, to outlaw and regulate restrictive practices that may be used by powerful trade unions and major employers: in free market, wages rate will be set by the interaction of abour supply and demand descisions, to raise the wages of lowest paid workers: many countries have minimum wage legislation designed to protect vulnerable and low paid workers from exploitations by powerful employers, for example in UK : the current rate : 21 yearsold and over : £6.19 18-20 years old : £4.98 under 18 years old £3.68 and apprentice £2.65, to reduce unemployment : government may often provide unemployed wrokers with help re-training in the new skills required for employment in new frowing industries and occupations, government also provide an employment service to help people look for joba and prepare for jobs interviews that can reduce the fosts of searching for employment and incrase the mobility of labour, and the last to outlaw unfair discrimination : it is perfectly legal to discriminate between people in work according their experience, performance and ability. It is unlawful in many countries to discriminate against people because of their gender, religion, and ages. Factors that affect the demand labour are wages, productivity (numbers of unitsproduced) , non wages cost (other expenses on employees example : social society contribution), future expectations, changes in consumer demand, technological advances, and penson (money given when worker resign). And the factor affecting supply of labour are wages, education and training, opportunities of job, evironment (work culture), demographic changes (number of people changes), and government roles and regulation (example : a worker should be at ages of 15 years – 60/65 years old. Example : The U.S. labour market of demand goes up and supply goes down : The U.S. labor force annual growth rate peaked in the 1970s at 2.6% and has been decreasing with each subsequent decade, largely due to declining birth rates and the stabilization of the number of women entering the labor market. From 1996 to 2006, the growth rate declined to 1.2% and it is expected to further decrease to 0.8% between 2006–2016. As the Nation’s need to recruit replacement workers increases, efforts will be challenged by this further slowdown in the growth of the U.S. labor force. Over the next decade, the projected labor force participation rate by age shows significant variation. The number of workers in the age range of 55 and older participating in the labor force is projected to be the fastest growing age group, from 38% in 2006 to 42.8% in 2016. Meanwhile, the amount of new entrants coming fresh from campuses is growing at a lower rate than workers who have been in the labor force for some time. In addition to targeting the Net Generation for recruitment, agency strategic workforce planning efforts will also need to factor in ways to retain and recruit older workers. The challenge will be balancing workforce experience sustainability and re-growth.
ReplyDeleteTiffany Aurelia 8C
In a free market economic system, scarce resources are allocated through the price mechanism where the preferences and spending decisions of consumers and the supply decisions of businesses come together to determine equilibrium prices. The free market works through price signals. The government may choose to intervene the price mechanism largely on the grounds of wanting to change the allocation of resources and achieve what they perceive to be an improvement in economic and social welfare. The reasons why government would like to influence the demand for and the supply of labour are to correct the market failure that can occur, to achieve a more equitable distribution of income and wealth, and to improve the performance of the economy.
ReplyDeleteThere are some ways a government can influence the demand for and the supply of labour. The first is employment legislation and regulation. This rule says that each employee have the right to get an equal pay, have a health and safety assurance, have benefits in work, and have their pension rights. Second, the government can influence the demand and supply of labour by tax rates. The demand of labour will fall if the government increase the tax rate. However, the demand of labour will rise if the government decrease the tax rate. The government also affect the demand of and supply of labour by giving employment subsidies, market information, minimum wage legislation and also education policy.
The intervene of government can make the demander of labour having loss. The employment legislation and regulation rule make the employers have to spend money for their pension rights and health and safety assurance. The tax rate will also affect the demand of labour. It affects the demand of labour by giving taxes to employers equal to the total amount of employee the employer have. The minimum wage legislation make the employer have to pay wages to the employees more than the minimum wage.The educational policy will affect the supply of labour. It affects it by giving minimum age and level of education to be an employee.
The conclusion is the government can affect the demand for and supply of labour. It affects the demand and supply of labour so there is no market failure and there is a more equitable distribution of income and wealth in the society. The rules of the government can affect both the demand for and supply of labour. Without the government, our economy in the country will be disorganized
Supply of labour is usually defined as the amount of a working population or labour force in a country. The demand for labour is referred to the need of labourer to produce goods and services for the consumers needs or firms. Both of these can vary from time to time due to factors such as wage rates, change in consumer demand for goods and services, changes in the net advantages of an occupation, demographic changes and so on.
ReplyDeleteThe supply of labour can be determined by the backward bending curve. If wages increase, the labour supply will also increase. If the wage decrease, the labour supply will decrease, suggesting a proportional relationship.
Nevertheless, there are four influences of the labour market. They are market power, trade union, external influences, and of course, the government. The government, however, has the largest role in influencing the supply of demand and labour. Therefore, it became the major source of demand for labour over the market wage rates for many types of occupations.
There are many ways a government policies and regulations may influence, whether direct or indirect. It is the governments mission to provide labour equal, safe, and fair to all so it will make a strong labour force to the country.
Firstly, the tax system and the provision of income support determine the labourers whether to work and how long working are influenced. The tax and income support systems should minimise distortions between reward and effort, while providing assistance for those in need. The challenge is to avoid undue disincentives to work.
Over years, government has lowered the marginal income tax rates and increased the thresholds at which the rates start to apply. In particular, the increases announced in the 2006-07 and 2007-08 Budgets in the 30 per cent tax threshold from $21,601 to $30,001 and the substantial increases in the Low Income Tax Offset will have increased incentives for workforce participation, particularly for secondary income earners who are more responsive to changes in tax. Businesses claim legislation and taxes depress the demand for labour.
The government might also set a minimum wage act. This law forbids employers from giving their employees less daily/monthly amount of wage. Most of the countries today apply to this rule. In the United States, the minimum wage act is first introduced to the country in 1938, to prevent events such as the Great Depression from happening again.
The government may also make subsidy policies such as unemployment benefit, cash handouts, and rebates to the poor.
The government may also conduct monetary policies and fiscal policies. The government gets the authority and control the money supply, then targeting such rate of interest for the goal of increasing the growth and stability of economy in a country. Much to a certain extent, it will affect the demand and supply of labour to the people.
By this, the government intervene and take part the labour markets in many reasons. Firstly, it will protect the rights of employees and their employers. Laws of employment and health of workplace, besides giving equal rights, also make them responsible for observing or knowing their rights. Secondly, it outlaws and regulate restrictive practices that will be use as some powerful trade unuions and main employers. Also, government help raise wages of very low paid labourers and reduce the percentage of unemployment. Lastly, it prevents unfair discrimination and racism. It is very disgraceful to discriminate or differenciate people because of their religion, ethnicity or race, sex, and disability.
So as a conclusion, the government have a really major and important role to the labour market. Without the intervene and their purpose, the country’s labour force and economy will be weak and uncontrolled.
Goverment are the major employers in many countries. The public sector therefore competes with private sector firms to attract many of the same types of workers with the same skills and so the goverments need to be aware what private firms are paying.
ReplyDeleteYet some people argue because the goverment is such a big employer it has the power to hold down the wages of public sector workers relative to those paid in the private sector. However, the lower public sector pay might be explained by many of its employees having more secure jobs and, in some cases, better pensions. For example :civil servants, the police and teachers are not at risk of losing their jobs due to falling consumer demand like many private sector workers.
But data is mixed. While there are many relatively lowpaid workers in public sector jobs, others appear to earn as much if not more than private sector workers in very similiar jobs. For example, a recent study in pakistan suggested its public sector workers earned on everage 49% more. This way explained by public sector workers generally having higher levels and education and productivity. A similiar study in UK also concluded and private sector workers one differences in their levels and education and qualifications were taken into account
There are 10 ways the goverment can influences the demand for labour and the supply of labour. The first one is employment legislation. The second one is national insurances contribution or as known as NICs. The third on is the tax rates. The forth is employment subsidies. The fifth is market information or job centres. The sixth one is the benefit system. The seventh one is education policy. The eighth is EU policy. The ninth is minimum wages legislation. The tenth is trade union legislation.
The goverment can influences the demand for labour and supply of labour in direct and indirect ways. Increasing regulation of the labour market seen as being damaging by some. business claim legislation and taxes depress the demand for labour.
Legislation and regulation, this rule says that each employee have the right to get safety and healthness, benefits in work, pension right, disability, equal pay, etc.
Just as in market for any good and services, the market price of labour or equilibrium wages rate, for an occupation will be determined where the demand for labour is matched by the supply of labour.
The equilibrium wage rate for a particular job can be illustrated graphically.at this wage we find how much labour will be employed by firms.
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ReplyDeleteDemand of labor is the business’ desire to hire employees. Meanwhile, supply of labor is the total number of employees available in a particular economic region. There are other factors that can affect the demand and supply of labor. The factors that affect demand for labor are wages, productivity or the number of units produced per unit of time, non wage costs or other expenses on employees such as social security contribution, pension fund contribution also insurance. Other factors might include future expectations, changes in consumers’ demand and technological advancement. The factors that also affect the supply of labor are wages, the increase of wages will also increase the labor supply and the decrease of wages will also decrease the labor supply, this means the relationship between wages and supply labor is proportional resulting a positive curve graph. Other factors are education and training, opportunities of job, environment or work culture and demographic changes. Last but not least, there is government rules and regulations to be one of the factor that influence the demand and supply of labor.
ReplyDeleteGovernment can influence the demand and supply of labor by protecting the employees and employers so there are no conflicts between both sides, there are some cases stating that the employers treat the employees in a harsh way or bullies even mental and physical abuse. They also help avoid restrictive trade practices, which involves the collective bargaining power. Sometimes there are problems between workers that are paid more than the other, this is to protect the lowest paid workers so they can get a fair amount of wages. Government can also reduce unemployment in a developing country, by providing enough jobs for the citizen. Another good influence by the government is that to outlaw unfair discrimination in the labor.
There is also occupational wage differential where workers get different amount of wages. The reasons of this happening are different abilities and qualifications, skilled worker usually will get higher salary than the semi and non skilled worker. Dirty jobs are dangerous, that is why people whom are working in dirty jobs get a large amount of money, because the risk of doing that particular task will cause a fatal accident. Another reason might include job satisfaction or happiness, lack of information on job and wages can also reduce the amount of wages earned by a worker. Every worker or perhaps only a few, will usually get fringe benefits, that is, other benefits aside from salary.
Government influences the country in many ways, especially the demand and supply labor. The demand and supply of labor is not only influenced by public and private sectors, firms, etc. The factors and reasons mentioned before in the paragraphs above showed that government affects the economies in a developed country. Every country needs government and president to run the country well to prevent any conflicts and troubles like corruption, robbery, democracy, abuse, unfair discrimination, etc. in order to balance the demand and supply of labor, there must be a government intervention.
Matthew J
ReplyDelete8C
Government can influence the supply of labor by many things. Government can make communicatin better for all workers by providing free Wi-Fi Hotspots around the town, and provide faster and better Hotspot connection in business districts. Government can also make stronger cellular connections so people can communicate better in business areas.
Government can also provide better facilites,like a local fire department that can provide a rapid response to the district so people can feel safer when they encounter fire. Government can also make Police Stations so there is less crime and less robbery.
Government can also affect by using non facilities factors including the funds allocation for that area of the city, city beautification, setting an equillibrium so that everybody can get an adequate wage for their life. Government can also provide jobs that can pay well, so labor will be more attracted to the business.
Businesses and Government can also cooperate to provide perks to te labor such as a pension fund when they retire, social security,the environmet they live in (whether it is a polluted area or not),free company car, or a more technological advanced workspace.
Wages also play an important role in supply ad demand of labor. More wages means more demand, while less wages means less demand. But, businesses cant give excess wages because they will have loss, they also cant make wages low because low wages makes supply of labor decrease.So, it is best to make a fixed wage equillibrium for labor.
Government also must provide better education for labor so the supply of unskilled,semi skilled, and skilled workers are equal. It will also attract better private sector jobs demand for semi skilled and skilled workers for the business
The demand for labor occurs when a company or firm needs to hire workers to produce goods and services for the company. Government can affect the labor market directly or indirectly such as through economic growth, income tax rate, wage rate, and building infrastructures spending.
ReplyDeleteAs stated in dictionary, tax is a compulsory contribution to state revenue, levied by the government against workers’ income and business profit. If the government increases the tax, the firm’s net profit will decrease and it will lower their ability of making more investments, which would in turn lower the demand for more worker.
Let’s say, the government decides to build a new highway or some other much needed infrastructures. The government will get a construction company to build the project. That decision can directly affect the demand for labor as the construction company will need more employees than normal in order to complete the project. Thus, the demand for labor will increase as government increase spending on building more infrastructure projects.
As a company grows, the demand for labor will also increases as they will need more people to work in order to produce more services. On the other hand, if a firm is stagnant, then they will not need more workers. Thus, the demand for labor will not increase.
A rise in wage rate increases the costs of firms in producing certain product, forcing them to raise their selling prices. As a result, the sales of such products will be affected negatively and in turn, so will the production of the product. This means less worker is needed. Therefore, when wage rate is increased, demand for labor is inversely affected.
The supply of labor refers to the amount of time worker is willing and capable of producing goods and services at a certain amount of wages. There are several factors that may affect the supply of labor such as population growth, hiring policy of foreign worker, wage rate and many more.
When government encourages its citizens to have more babies, then labor pool will increase as there are more people who can work. When government restricts its citizens in having babies, then there will be less people available to work. Therefore, government policy of population growth will directly affect the labor supply.
Young, educated people nowadays may not be interested to work inferior jobs such as construction jobs. Companies need to hire foreign workers in order to perform these jobs. As government allows foreign workers to come and work in their country, then the labor supply will increase. Government policy on wage rate directly affect labor supply as higher wage attract more people to work. As more people will be attracted and are willing to work when the wage is higher.
There are various factors affecting the demand and supply of labor. Government policy does affect it directly or indirectly.
Monique 8C
The government can influence the demand for labour and supply of labour by increasing the wages of the worker or by decrease the wages of the workers that were working for the company. If the wages that the worker or the employees earn is increasing, they will produce more goods and services but if the wages they receive is decreasing, they will produce less goods and services because they think that what for working hard and produce many goods if they only get a little amount of wages. The rules and regulation of the government also can affect the supply of labour. Not only the government can affect the demand for labour and supply of labour. Other factors affecting demand for labour are the productivity of the workers, non wages cost, future expectations of the labour or workers, Changes in consumer demand, and also technological advancement. There are also other expenses on the employees which are the social security contribution, Pension fund contribution, and also the free insurance that the company provide for them if they get injured or sick. The other factors affecting the supply of labours are of course the wages they earn, the education and training that they have studied and train before, the opportunities of job, the environment around the, whether it is good or not, the demographic changes, and also the rules and regulation that the government has made for all employees or workers.
ReplyDeleteNow I will discuss some of the factors affecting the demand for labour. It is the changes in consumer demand, the labours must follow what the consumer wants in accordance to have much profit. For example, if the consumer wants Toyota Innova more than other Toyota’s cars so the labours and the company must make more Innova cars to make much profit so they will not be bankrupt. There is also the future expectations of the labour, the labour wants pension funds if they have retired from the company to support their lives because if they didn’t get the pension funds , they can’t suppot their lives because they don’t get any incomes.
I will also discuss some factors affecting the supply of labour. It is the education and training of the labour or the employees, If the workers get more knowledge and study or traning more, they will produce more goods and services so they can get profit more if the consumers wants to buy the goods and services that the workers or the employees produce. The other factor is also the government rules and regulation, all the workers or the employees must follow the rules and regulations that the governments make, if they do not follow the rules and regulation, they will be punished by the government or by the companies.
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