Labor economists are interested in how labor supply and demand affect the relationship between employees and employers. This person’s job entails analyzing how labor availability affects the wages paid an employer. A labor economist may also try to figure out what causes unemployment. Salary trends and demographic changes, such as the workforce’s age and the availability of cheaper labor provided unskilled workers or immigrants, are two other factors that affect the labor market and are studied a labor economist. Labor economists are frequently hired private companies and governments.
Typically, labor economists concentrate on the population that is eligible to work; this group is referred to as the labor force. To meet his criteria, the subjects studied must be of legal working age under the laws and policies of the country or municipality in which they live, they must not be in the military or physically or mentally disabled, and they must have jobs or be actively seeking work. This data is used labor economists to assess the state of the labor market and make predictions about its future.
By examining certain characteristics of the labor force, labor economists can predict whether wages will rise or fall. Members of the labor force may be able to earn more money if the jobs they have or are looking for require advanced skills, expertise, or education credentials. Wages may fall if a position requires little skill and has a large number of potential laborers waiting to fill it. A labor economist also studies how immigrants with a particular skill set or background affect the labor market.
Labor economists pay attention to another aspect of the labor market: unemployment. A labor economist can calculate unemployment subtracting the number of people who are currently employed from the total number of people in the labor force. Furthermore, labor economists calculate a community’s unemployment rate dividing the unemployment rate the total labor force.
Companies seeking information about their hiring or payment practices, as well as governments seeking information on the wages and employment prospects of their citizens, may hire people seeking work in this field. A bachelor’s degree in economics is required for the position, though some employers prefer master’s or doctorate degrees. Because many of their findings will be presented through oral or written reports, labor economists must also be skilled speakers and writers.