Labor market Term Paper Example | Topics and Well Written Essays - 1250 words

Labor market - Term Paper Example America’s obsession with Industrial began with Slater’s mills in which textiles became the primary market to produce. Although it may seem a new age, most workers were orphans or children who owed debt to the nation. The drive of capitalism for this country relied on many factors that included slavery, turned raw goods into products, factories, and the ability to produce such a drastic workforce. Hence, Smith’s ideas of capitalism along with an adequate labor force. The labor market impacts the economy through market equilibrium, immigrants, and statutory laws enacted by the government (Abowd, 12). During a recession, when the economy struggles to thrive, employment is diminished as the labor force is not to keep the market equilibrium in check. Consequently, during an economic book, both employment and inflation rise due to the money supply market. Labor, capital, natural resources and entrepreneurship are the key elements that contribute to serve as a catalyst for the economic growth of US. Labor consists of the people who produce the goods and services in an economy while capital is the equipment, machinery, manufacturing plants and office buildings needed to produce goods and services (The Workers Union. 2). Labor is also influenced by government investment in infrastructure, such as schools, roads and parks. These can also have an effect on the wages paid to the labor force because people are willing to relocate depending on the competitive salaries offered. The economic history of labor market is associated with the correlating the forces that drive the allocation of lab or effect in the economy during different times. Labor market institutions are prevalent in society as the formation of unions is the testament towards the collaboration and gathering of the labor market (The Workers Union, 28). In addition, the new decade has witnesses the evolution of labor market as job staffing agencies have been created in order