Labor economists analyze how the supply and demand of labor affect the relationship between employees and employers, including wage trends, demographic changes, and unemployment. They focus on the workforce and use information to measure the health of the labor market and make assumptions about its future. A bachelor’s degree in economics is a minimum requirement for the position.
Labor economists study how the supply and demand of labor affect the relationship between employees and employers. A person with this position can analyze how the availability of workers affects the wages an employer pays. In addition, a labor economist may seek to determine the causes of unemployment. Wage trends and demographic changes, such as the age of the workforce and the availability of cheaper forms of work provided by unskilled workers or immigrants, are two other issues that influence the labor market and are studied by a labor economist. Businesses and private governments often hire labor economists.
Generally, labor economists focus primarily on the population qualified to participate in the labor force; this group is called the workforce. To meet this requirement, the subjects studied must be of legal working age in accordance with the laws and policies of the country or county in which they live, must not be in the military or physically or mentally incapacitated, and must be employed or in the process of to actively look for work. A labor economist uses this information to measure the health of the labor market and make assumptions about its future.
Labor economists determine whether wages will rise or fall by reviewing certain characteristics of the workforce. Workforce members may earn higher wages if the jobs they are working or pursuing require the advanced skills, knowledge, or education credentials they possess. If a certain position requires little skill and has a high number of potential workers waiting to fill it, wages may decline. In addition, a labor economist studies how immigrants of a particular skill or background affect the labor market.
Unemployment is another aspect of the labor market that labor economists focus on. By subtracting the number of people currently employed from the number of people making up the entire labor force, a labor economist can determine the level of unemployment. Furthermore, labor economists plot the unemployment rate for a community by dividing the unemployment level across the entire labor force.
People looking for work in this field may be hired by companies seeking information about their hiring or payment practices or by governments seeking information about their citizens’ wages and employment prospects. A bachelor’s degree in economics is a minimum requirement for the position, and some employers require a master’s or doctoral degree. Labor economists must also be skilled speakers and writers, because many of their findings will be presented through oral or written reports.
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