What Is A "tight Labor Market" And Why Does This Drive Labor Costs Up?

[lathrop]

I was reading an report in Organization Week about how "the present job market remains tight adequate to hold pushing up labor charges." Can a person clarify this to me?

[Barr]

[Tolman]

DBL said: 1 But assuming a tight labor market place implies much more folks than jobs, wouldn't that drive the labor charges down? 87 months ago

[Osmar]

when there are far more jobs obtainable than folks to do them, workers can be choosier and take only the larger paid job, causing employers to have to improve wages/benefits to attract workers. this is a tight labor industry. it implies that employers should compete to get staff.

[muata2]

Law Of Supply and Demand, More Jobs than People Law Of Supply and Demand, More Jobs than People ~ Causes employers to pay more for warm bodys.  When its the other way, More People than Jobs, than the cost of labor goes down, due to the companys can pick and chose. Hope this answered your question. DropKickMurphy 87 months ago Please sign in to give a compliment. Please verify your account to give a compliment. Please sign in to send a message. Please verify your account to send a message.

[Nouel]

But assuming a tight labor market means more people than jobs, wouldn't that drive the labor costs down?

[Clancy]

fewer people than jobs when there are more jobs available than people to do them, workers can be choosier and take only the higher paid job, causing employers to have to increase wages/benefits to attract workers. this is a tight labor market. it means that employers must compete to get employees. bacon 87 months ago Please sign in to give a compliment. Please verify your account to give a compliment. Please sign in to send a message. Please verify your account to send a message.