Labor Economics · intermediate
What moves on the Labor Market diagram
A larger workforce shifts labor supply right: more employment at a somewhat lower market wage, holding demand fixed.
Start at equilibriumequilibriumThe point where opposing forces balance, quantity supplied equals quantity demanded, so there's no pressure for price to change..
Migration adds workers at every wage. Ls shifts right.
Employment rises while the wage eases. (In full analysis, migrants also ADD labor demand by spending, this diagram shows the supply side only.)
Examiners ask this as: immigration labor supply, workforce grows, migration wages.
Other scenarios on Labor Market