this post was submitted on 01 Apr 2024
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The labor market is a market - that means it is regulated by supply and demand.
Now, there's a demand for workers.
Now, think about what happens when the supply goes down - prices go up.
In other words: If there are fewer workers on the labor market, that means the price for labor goes up, in other words: wages go up.
Ok. That’s a very fine system if everyone in the country works in a button factory where they just push buttons on a keyboard all day and don’t actually produce anything.
What do you think businesses are… making products for??