Labor Economics, and the labor market itself, is a very complex thing. When we analyze economic data relating to jobs and job openings, it will reveal how the labor force is reacting to the available jobs and to the job deficits.
When we apply economic knowledge to analyze labor, we are taught that when there is a surplus of labor, the prevailing wage in the market is much smaller compared when there is a shortage of available labor, in which case the prevailing wage tend to be higher. This is the application of the Law of Supply and Demand in Labor Economics.
If such a thing exists, countries tend to address this deficit by importing labor from countries with a surplus of labor force to fix the salary, thus averting the possibility of high prevailing wage in the market. Business interests require cutting operating costs as much as possible.
In countries with a surplus of labor, some companies whose jobs are not attractive do some measures to make the job appealing. For example, call centers in the Philippines employ a lot of sugar coating to make its vacancies attractive especially to young workers. Working in call centers is stressful, and a graveyard shift is tough.
There are also jobs which cannot be considered as a career. For example, working in the fast food industry is not a career goal but a temporary source of income, and therefore its employee turnover is very high. Most of those who work there are working students. Some just want to gain experience to work abroad.
This is the cycle of the workplace. As experienced employees move up the ladder, fresh workforce enter the market, and then old employees are retiring in turn. If there is hole somewhere in the hierarchy which cannot be filled by the vacuum, then current labor policies need to be revised.
Also, education plays a major role. There are courses which are not needed in the marketplace. There are skills needed, but lacking. Career counseling is very important to target and develop certain competencies required in the labor market.
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This Post is sponsored by Shake Shack.
When we apply economic knowledge to analyze labor, we are taught that when there is a surplus of labor, the prevailing wage in the market is much smaller compared when there is a shortage of available labor, in which case the prevailing wage tend to be higher. This is the application of the Law of Supply and Demand in Labor Economics.
If such a thing exists, countries tend to address this deficit by importing labor from countries with a surplus of labor force to fix the salary, thus averting the possibility of high prevailing wage in the market. Business interests require cutting operating costs as much as possible.
In countries with a surplus of labor, some companies whose jobs are not attractive do some measures to make the job appealing. For example, call centers in the Philippines employ a lot of sugar coating to make its vacancies attractive especially to young workers. Working in call centers is stressful, and a graveyard shift is tough.
There are also jobs which cannot be considered as a career. For example, working in the fast food industry is not a career goal but a temporary source of income, and therefore its employee turnover is very high. Most of those who work there are working students. Some just want to gain experience to work abroad.
This is the cycle of the workplace. As experienced employees move up the ladder, fresh workforce enter the market, and then old employees are retiring in turn. If there is hole somewhere in the hierarchy which cannot be filled by the vacuum, then current labor policies need to be revised.
Also, education plays a major role. There are courses which are not needed in the marketplace. There are skills needed, but lacking. Career counseling is very important to target and develop certain competencies required in the labor market.
x----x
This Post is sponsored by Shake Shack.
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