Question

Name some factors that can cause a shift in the

supply curve in labor markets.

Short answer

market which depicts the availability of labor, according to demand and supply in market. Here supply is provided by employee and demand is provided by employer.

Step-by-step solution

Step 1. Introduction

supply means the willingness of a firm or the ability to produce a good for consumption purposes in the market. There are different factors explained below that can cause a shift in the supply curve in labor markets.

Step 2. Number of workers

First and most basic factor that affect the supply curve is number of workers. Increase number of workers means more productivity which will have a rightward shift in demand curve whereas decrease number of workers will decrease productivity resulting in a leftward shift in supply curve.

Step 3. Government policies

If the government policies are in favor of workers like providing them sick leave, maternity leave and bonus and other incentives and no requirement of specific education then it will result in increased number of labor which will result in a rightward shift whereas if government policies are rigid like specific education, low salary and other specific requirements this will lead to disinterest of workers resulting in decrease number eventually a leftward shift in supply curve.