Question

Explain the impact of each of the following events on the domestic market for union labor.

a. Union-produced TV and radio commercials convince consumers to buy domestically manufactured clothing instead of imported clothing.

b. The union sponsors periodic training programs that instruct union laborers about the most efficient use of machinery and tools.

Short answer

(a) Increased demand for domestic goods and services will lead to increased labour demand. As a result, labour demand will increase.

(b) Labor productivity growth tends to increase number of professionals. The labour market in the union will become more productive.

Step-by-step solution

Introduction.

The labour market, also known as the job market, refers to the quantity and demand for labour, in which employees supply and employers demand. It is an important part of the economy and is intricately linked to the markets for capital, goods, and services.

TV and radio commercials convince consumers (part a).

If consumers are persuaded to buy domestically produced goods and services, there will be an increase in labour demand in the labour union market.

Consumers will buy domestically produced goods, which will increase market demand for these goods.

An increase in demand for domestic goods and services will result in an increase in labour demand. As a result, labour demand will increase.

The union training programs instruct union laborers about use of machinery and tools (part b).

Laborer technological training programmes would boost productivity. An increase in labour productivity tends to increase demand for skilled workers. The union labour market will become more productive.