Question

Name some factors that can cause a shift in the

demand curve in labor markets.

Short answer

Change in demand of goods to be produced by labor, Change in production process : can cause a shift in labor demand curve.

Step-by-step solution

Labor Demand - Basic Concept 

Labor Market demand is done by firms. it is called Derived Demand, based on demand of the good produced by respective labor.

Primary factor effecting quantity of labor demanded is its price ie wages & salaries. Quantity of labor demanded is inversely related to wage / salary level, so the curve is downward sloping.

Shift Detailed Explanation

Change in wages or salaries causes increase (expansion) or decrease (contraction) in 'quantity demanded' of labor, which leads to movement along the labor demand curve.

Change in any factor other than wages or salaries causes increase or decrease in 'demand' of labor, which lead to shift of the labor demand curve.

a. These factors other than wages can be

• Change in demand of goods produced by the labor : More demand of goods imply more demand of labor and shift the curve rightwards, & vice versa.
• Change in process or technique of production : Labor saving technique imply decrease in demand of labor and shift supply curve leftwards, & vice versa.