Essay: Causes of Labor Shortages
Labor market shortage is one of the issues that affect the human resources in any organization. Among the causes of labor market shortage is declined unemployment rates and this results to reduced labor surpluses. When this situation arises, the number of laborers available at the present wage level is less than the number of laborers available. Others causes of labor shortages include
Decreased labor supply,
- Decreased wage rates,
- monopsonistic labor market,
- Internal rate of return and the social demand model among others.
Taking into consideration the pressure caused by labor market shortage on the HRM, it is important to evaluate the outline the main considerations in designing jobs for organizations facing labor market shortages (Haskel & Martin,1996).