Theory question 109
Labour MarketSection B (answer four questions only from this section)
Explain the factors which influence the level of employment in your country.
Show the model answer
Model answer
Level of aggregate demand for goods and services.
Level of public and private investment.
Availability of capital and credit.
Government policies (fiscal and monetary, wage policy, retirement age).
Level of technology (labour-saving machines reduce jobs).
Size of the labour force / population growth.
Educational system and skills relevant to available jobs.
Availability of infrastructure (power, roads).
Seasonal factors, e.g. weather in agriculture.
Trade union demands for high wages.
Political stability and investment climate.
Explanation
Explain how each factor creates or reduces jobs.