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The Labour Market Essay
Labour market is where individuals seeking employment interact with employers who want to obtain the most appropriate labour skills for their production process. Labour markets are significantly affected when wages rise, as they create an increase in unemployment or an increase in employment or have no effect at all, causing economic growth.
When wage rates increase, it increases the quantity of labour supplied, as firms can no longer afford to pay all its employees the increased rate, therefore employers need to make a decision in dismissing some employees. …
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