Understanding the labour market
1) Read the text "The Labour Market" and answer these
questions.
2.
What is the relationship between the price of labour and the demand for
it?
3.
What does the "point where the lines cross" in Figure 1
represent?
4.
What are the three things mentioned that can cause a shift in the
demand for labour?
5.
How is a worker's "productivity" defined in the text?
2) A. Match the economic terms (1-6) with their definitions (A-F).
|
1. Labour Market |
A. The amount of a product or service a company produces. |
|
2. Output |
B. How much a worker produces in a certain time. |
|
3. Supply |
C. The economic system where workers offer labour and employers buy it. |
|
4. Demand |
D. The employers' need for labour. |
|
5. Productivity |
E. The satisfaction a consumer gets from a purchase. |
|
6. Utility |
F. The amount of labour workers provide. |
B. Now, complete the sentences using the terms from the table above.
2. A
company can increase its **** by hiring more workers or using better
technology.
3.
The **** for skilled software engineers is very high at the
moment.
4.
If the **** of qualified candidates is low, companies have to
offer higher salaries.
5.
Training employees can significantly improve their ****.
3) Look at the following sentences from the text. They show a cause-and-effect relationship.
*
"As the price of labour increases, the demand `decreases`."
*
"If new technology can replace workers, `then` there will be an
overall decrease in demand for labour."
*
"When worker productivity falls, companies `will pay` less for
labour."
Now, complete these sentences logically.
1. If the minimum wage increases significantly, ... .
2.
As a company grows, ... .
3. When a worker's skills become outdated, ... .
4) Study the following scenarios. Use the vocabulary from today's lesson (e.g., labour market,
supply, demand, output, productivity, wages).
A large tech company is building a new factory
in your town. It will create 2,000 new jobs.
How will this affect the local labour market?
What might happen to wages for other jobs in the area?
How could this increase the output of the local economy?
A bank introduces new software that
automates 50% of the tasks currently done by its accountants.
What will be the effect on the demand for accountants at this bank?
How might this affect the productivity of the remaining accountants?
What could the bank do with the accountants
whose jobs are replaced?
When a large tech company builds a new factory in a town, the whole local labour market changes. The demand for workers rises quickly, and many people find new job opportunities. Wages in the area may also increase because companies compete to attract skilled employees. With more people working, the town’s output grows, and shops, cafés, and services become busier. Life in the community feels more active and prosperous.
ОтветитьУдалитьIn contrast, when a bank introduces new software that automates half of the accountants’ tasks, the demand for accountants falls. However, the productivity of the remaining workers increases, as the software helps them work faster and more accurately. The bank might retrain some employees for new roles, turning a challenge into a chance for progress.
This will create a high demand for labour in the local labour market. To compete with the new factory for workers, other local employers will likely have to increase wages to attract and staff. The new factory will directly increase the output of goods.
ОтветитьУдалитьThere will be a decrease in the demand for accountants at the bank because the new technology can replace their labour. The productivity of the remaining accountants is likely to increase. The bank could take on these accountants in new roles that require human oversight of the software or more analytical tasks.
The new factory creating 2,000 jobs will increase demand in the local labour market, making jobs easier to find and potentially tightening the supply of workers. This could drive up wages for other jobs as employers compete for talent. The factory will boost the local economy’s output by producing goods or services, increasing consumer spending, and potentially enhancing worker productivity through advanced technology or training, further stimulating economic growth.
ОтветитьУдалитьThe labour market works like any other market, where workers offer their labour and employers pay wages for it. Companies buy labour to increase their output, especially when the demand for their products grows. According to the laws of supply and demand, when wages rise, demand for workers usually falls, and when more workers are available, they expect higher pay. The real wage level appears where supply and demand meet. However, new technology can reduce demand for labour, while higher productivity makes workers more valuable and increases wages.
ОтветитьУдалитьThe opening of the new factory will increase demand for labor, lower unemployment, and likely push wages up due to competition for workers. The local economic output will grow from the factory's production and the increased spending by new employees.
ОтветитьУдалитьMeanwhile, the bank's new software will reduce demand for accountants but increase the productivity of the remaining ones. The bank could retrain staff, implement a hiring freeze, or as a last resort, reduce its workforce.