Influences on labour supply and demand

Annotations:

• •Extent of market power in the labour market •Public Sector workers – less market power – pay determined by government •Monopsony buyers of labour – health service, education? •Local negotiation in the workplace – who has the power? •Extent of information and knowledge available to the employer and employee

1. Monopsony "One buyer faces many suppliers"
2. Pay review bodies
3. Pay constraints
4. Power of labour

Annotations:

• •Government policy in a wide variety of areas has a significant influence •Influences the demand and supply of labour in direct or indirect ways •Increasing regulation of the labour market seen as being damaging by some •Businesses claim legislation and taxes depress the demand for labour

1. Employment legislation

   Annotations:

   • Employment Legislation –Equal Pay –Sex Discrimination –Disability –Health and Safety –Benefits in Work –Pension Rights •Necessity of meeting legislation imposes additional costs on businesses – shifts the demand for labour to the left
2. Tax & PRSI
3. Employment subsidies
4. Social welfare
5. Education policy
6. EU Policy

   Annotations:

   • •Social Chapter  –Specifies various employment rights and responsibilities –More rules and regulations for employers to meet –Claim that it makes the labour market less flexible –Imposes additional costs on employers again •Working Time Directive –Again – limits employer flexibility –Raises cost!
7. Mininum Wage
8. Trade union legislation

Annotations:

• •Less popular •Less relevant in service industries •Decline of national bargaining •Impact of changing work practices and legislation •‘New’ role for trade unions

1. Degree of union power
2. Membership
3. Role of TU's

Annotations:

• •Working environment has changed •Workers need to be more flexible •‘Job for life’ unlikely •Migration trends will affect labour market •Technology and transport change the way we work •Social Trends – women in the workplace, work-life balance, work ethic

1. Technology
2. Nature of business activity
3. Transport
4. Social trends
5. Migration