Labour markets - Economics Online (Page 2)

Economics Online

Labour markets

A collection of 48 posts

An example of seasonal unemployment depicted in a ski slope in summer, with its ski lifts not in operation.

Seasonal Unemployment

Seasonal unemployment describes a situation where workers are unemployed at certain times of the year when demand has decreased. Although unemployment is always problematic, seasonal unemployment doesn't last - eventually, the peak season of a given industry arrives and many workers become employed once again. While this type

Using Asymmetric Information To Understand How Markets Work

Using Asymmetric Information To Understand How Markets Work

If you have a sneaking suspicion that business deals may benefit one party more than the other, you’re entirely right. Although this may not be anything new, there is a term you can ascribe to some of those sneaky business deals. It’s called asymmetric information. Asymmetric information is

Human Capital: What It Is and How It Impacts the Economy

Competitive markets

Human Capital: What It Is and How It Impacts the Economy

“Human capital” is a phrase used to refer to the economic value of the qualities and abilities of labor that have an influence on productivity. Education is one example of human capital. Investment in these qualities leads to greater economic output. Since workers aren’t separate from these assets, the

Alternatives to GDP in Measuring Countries

Managing the economy

Alternatives to GDP in Measuring Countries

Alternatives to GDP in Measuring Countries There are currently 195 countries on Earth. Each country is its microcosm—a world inside a world, where people encounter their own problems, just like all of us. It’s a world where leaders try their hardest to drive the society forward, towards the

Consumer Confidence Compared to Q2 Job Growth

Competitive markets

Consumer Confidence Compared to Q2 Job Growth

Consumer Confidence Compared to Q2 Job Growth Since WWII, nothing has caught global attention and heightened economic fears quite like Covid-19. Many economies are at the brink of collapse, as companies struggle to stay afloat. World governments have imposed lockdowns and significant movement restrictions, leading to enormous losses for small

Alberto Nagel Chief Executive Officer of Mediobanca

Spotlight: Alberto Nagel Chief Executive Officer of Mediobanca Alberto Nagel’s Youth Alberto Nagel was born on 7th May 1965 in Milan and is since 2008 the CEO of the Mediobanca S.p.A., an Italian bank founded in the year 1946 and with revenues of approximately 2.7 billion

Comparing Unemployment in 2020 to Previous Economic Disasters

Comparing Unemployment in 2020 to Previous Economic Disasters

Comparing Unemployment in 2020 to Previous Economic Disasters The year 2020 has resulted in a major economic downturn as a result of the coronavirus pandemic. As the entire United States, along with many other countries, enforces social distancing and quarantine as a new way of life in order to combat

The Effectiveness of Economic Stimulus Around The Globe

The Effectiveness of Economic Stimulus Around The Globe

Since the Covid-19 pandemic struck in 2019, the world has suffered a massive economic shock, virtually unprecedented in decades. In response to this, governments worldwide have acted decisively to protect their citizens against the vicious, uncompromising monster. Essentially, the governments, in collaboration with their central banks, have introduced a series

Comparing Fiscal Responses to COVID-19 as Percentage of GDP across Countries

Business economics

Comparing Fiscal Responses to COVID-19 as Percentage of GDP across Countries

Comparing Fiscal Responses to COVID-19 as Percentage of GDP across Countries Covid-19 has been the most dramatic financial event of our lives and so governments around the world have responded dramatically to this crisis. The universal response has been to provide short term relief which is in stark contrast to

Gender-pay-gap

The gender pay gap In July 2015, UK Prime Minister David Cameron set out plans to force UK firms to publish their gender pay gap and in so doing positioned the UK as one of the first countries to make gender pay reporting mandatory. Similar policies have recently been introduced

Minimum_wage

The minimum wage A national minimum wage sets the minimum hourly wage rate that is acceptable in law. A national minimum wage has been law in the UK since 1999, when the adult hourly rate was set at £3.60. The aims of a national minimum wage The long-term aim

The minimum and living wage

The minimum and living wage

The minimum wage A minimum wage sets the minimum hourly wage rate that is allowed in law. In the UK we can identify three types of minimum wage: 1. The National Minimum Wage, which has been law in the UK since 1999, when the adult hourly rate was set at

Zero hours contracts

Zero hours contracts

What are ‘zero hours’ contracts? The term ‘zero hours contracts’ (also called casual contracts) can refer generally to any employment contract that does not guarantee a minimum number of hours, or more specifically to employment contracts where the phrase ‘zero-hours’ is used. While there are around 1.8 million workers

Trade unions and the labour market

Trade unions and the labour market

Role of trade unions Trade unions are formed to protect the interests of their members. Unions pursue the following objectives: 1. To improve the working conditions of members, such as working hours, holiday entitlement, safety at work, working environment. 2. To improve wages – unions tend to believe strongly in the

Monopsony power and remedies

Monopsony power and remedies

Monopsony power Monopsony power exists when a single buyer or an association of buyers can dictate the prices they pay to suppliers, or control other aspects of the relationship that exists between themselves and their suppliers. Monopsony power in labour markets In the case of labour markets, monopsonists can exert

Monopsony

Monopsony The special case of the monopsonist is an important one. A monopsonist is a single buyer of labour, such as De Beers, the diamond producer, and the major employer of diamond workers in South Africa. Monopsonists are common in some small towns, where only one large firm provides the

Labour market discrimination

Labour market discrimination

Discrimination Labour market discrimination is defined as a situation where workers or groups of workers are treated differently in terms of recruitment, pay, benefits and promotion from other workers or groups due to their non-economic characteristics, including gender, race, religion and age. This means that while workers may be equally

Wage differentials

Wage differentials

Wage differentials If labour markets are very competitive, with identical workers and perfect mobility of labour, wages will move towards the same equilibrium level. However, in reality wages can differ greatly, even for the same job. A variety of different factors account for this, including the following. Human capital differences

Labour market failures

Labour market failures

Labour market failures Like product markets, labour markets can also fail. The main types of labour market failure are the existence of skills gaps, poaching, labour immobility and inequality. Skills gaps, training and poaching The theory of poaching suggests it will not benefit firms to provide workers with general skills

Economic rent and transfer earnings

Economic rent and transfer earnings

Economic rent and transfer earnings The wage received by a worker can be broken down into two components. Transfer earnings Transfer earnings are the reward necessary in order to keep owners of factors of production supplying their resource. In terms of labour, transfer earnings are the minimum reward necessary to

Wages and employment

Wages and employment

Wages and employment Characteristics of a perfectly competitive labour market A perfectly competitive labour market has a number of key characteristics including: 1. No barriers to entry for labour. 2. Perfect knowledge of available jobs. 3. Each unit of labour is identical to every other unit. 4. The labour supply

Supply of labour

Supply of labour

Labour supply in a competitive market The labour supply is defined as the number of workers willing and able to work, multiplied by the hours they are willing and able to work. It is determined by: The wage rate The higher the wage rate, the more labour is supplied, which

Demand for labour

Demand for labour

The labour market Estimates by the ONS in 2018 put the size of the UK labour force at 33.8m workers out of an estimated population of 66.1m. In 2018 (December), those in work totalled 32.48m , with unemployment at 1.38m. The labour market includes the supply of