Labour markets

A collection of 49 posts

Business economics

Employer of Record: Cutting the Fixed Costs of Hiring Abroad

An employer of record (EOR) is a third-party organisation that becomes the legal employer of a worker in another country, running payroll, tax and statutory contributions, while the client business directs the worker's day-to-day job. For firms hiring abroad, the attraction is largely economic. It lowers the cost

Labour markets

The Economics of the Tech Talent Shortage

The tech talent shortage is the persistent gap between the number of skilled technology workers employers want and the number available. Demand has grown fast, supply has adjusted slowly, and the result has been high salaries, long-running vacancies and a range of institutions that match employers with workers. Why Demand

Labour markets

API automation is extending the division of labour to routine office work

Automation typically does not replace an entire job, but instead automates certain repetitious aspects of that job. According to McKinsey & Co, the available technology could enable the automation of at least 30% of activities being performed in approximately 60% of jobs. API Workflow Automation is one tool being used

Labour markets

The cobweb model explains why the AI data-centre boom keeps running short of electricians

The cobweb model describes how the AI data centre boom continues to face a shortage of electricians. Currently, AI data centres in the United States are facing a severe shortage of electricians as demand continues to outstrip supply. The $6.7 trillion global data centre investment that McKinsey estimates by

Innovation & Technology

AI chatbots displace tasks, not jobs: the task-based model of automation

Most companies that implement AI technology to automate customer service do not entirely replace the entire workforce. Instead, AI chatbots automate the repetitive tasks that customer service agents are expected to do so that they can spend more time assisting with more complicated tasks and problems that require human intervention

Business economics

Agglomeration Economies and Localisation Effects: What Makes Being Located In The City of London A Competitive Advantage for Start-ups

While the City of London is just over 1 square mile in size, the sheer amount of economic output generated from such a small area would be hard to find even if the same amount of economic activity was spread across a whole region in the UK. In 2024, London

small business

Incentive Mechanism: Retirement Savings in the Small Business Labour Market

Small businesses find themselves in a precarious situation within the labour market as they compete with larger employers for the same pool of workers and find it difficult to offer the same level of salaries, brand recognition, and benefits as corporate employers. Of these areas, the most significant is an

Labour markets

Why Strong NDAs Matter More Than Ever in Modern Consulting

Consultants are essential to an organisation's success in today's business environment, offering special expertise, guidance and support. Whether cramming your troubles into a software package or planning a budget and budgeting, consultants can access a lot of sensitive information that can affect your company's

Factors of production

Comparative Advantage in the Age of Automation: The Impact of AI on Global Trade Dynamics

AI is poised to create major changes in labor markets around the world by altering opportunity costs and nations' comparative advantages in manufacturing versus white collar tasks.

Managing the economy

The Inefficiency of Venture Capital in the Modern Economy: A Result of Oversaturation and Excess Capital

Venture capital inefficiency arises from oversaturation and excess capital.

Business economics

The Impact of Small, Highly Efficient, and Cheap Nuclear Reactors on Developed Economies: A Focus on Energy Costs and Transportation

SMRs could reduce energy costs, improve resilience, and decentralize power generation.

Definitions

Natural Unemployment Formula

The minimum unemployment that occurs in a well-functioning economy if there were no cyclical unemployment is called the natural unemployment.

Business economics

Exponentially Rising Tuition Costs Suppress Economic Growth in the U.S.

Rapidly increasing tuition is suppressing economic activity and is causing various social ailments.

Definitions

Backward Bending Supply Curve

For an individual worker, the supply of labour is the number of hours for which the worker is willing and able to work in a given time period.

Definitions

Sticky Wages

A concept in economics that describes how nominal wages respond slowly to changes in the economy is called sticky wages.

Factors of production

Labor Market Polarization and the Rise of the Virtual AI Agent for Sales Calls: An Application of Routine-Biased Technological Change

AI sales agents are accelerating labor market polarization by automating routine, middle-skill call center jobs.

Behavioural economics

Labor Market Polarization: AI and the Reshaping of the Video Editing Industry

AI video tools are polarizing the labor market—empowering creators while eroding demand for mid-skill editors.

Behavioural economics

How Nudge Theory Is Transforming Customer Loyalty Through Behavioral Economics

Small businesses now use nudge theory in rewards programs to boost customer loyalty and drive long-term economic value.

Labour markets

The Principle of Comparative Advantage: Navigating the Shift to an A-La-Carte Workforce

As businesses adapt, many are opting for an a-la-carte model of workforce management. This is the strategy of outsourcing some tasks to outside firms rather than have in-house teams for every function. So, a firm formerly having its coders in-house full time to run code testing may now also get

Definitions

What is a NEET?

The term “Not in Employment, Education, or Training” is abbreviated as NEET.

Definitions

Factor Market: A Comprehensive Guide

A factor market refers to the collection of buyers and sellers of a factor of production.

Definitions

Labour Arbitrage

Labour arbitrage is the process of finding and utilising low-cost labour to produce goods and services to enhance business efficiency.

Definitions

Binding Price Floor

A price floor is considered effective or binding if it is set above the market equilibrium price.

Definitions

Efficiency Wage Theory

The efficiency wage theory states that paying workers higher wages than the market rate can increase their productivity and efficiency.

Definitions

The Law of Unintended Consequences

The law of unintended consequences states that the actions taken by economic agents with an objective in mind can lead to unexpected outcomes.