Labor Market Trends and Significance of Tight and Loose Labor Markets

This article discusses the labor market trends that will make the recruitment and selection process tough for PTP Soda drinks and the significance of tight and loose labor markets. It provides insights into the challenges faced by PTP Soda drinks in recruiting skilled employees and suggests strategies to overcome these challenges. Additionally, it explains the significance of tight and loose labor markets in shaping recruitment strategies and the bargaining power of employers and employees. The article concludes with references to relevant studies and research.

Running head: LABOR MARKET
LABOR MARKET
Name of the Student
Name of the University
Author Note

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Response to question 1: Labor Market trends
The labor market trends that will make the recruitment and selection process tough for PTP
Soda drinks are as follows:
 Increasing rate of apprenticeship programs by the companies in the similar industry
will restrict the availability of skilled workforce in the UAE market.
 The increasing competition in the recruitment and selection strategies will make the
recruitment of skilled and senior employees unfavorable for PTP Soda drinks.
 Growth in recruitment from service industry like healthcare and tourism.
 Increasing requirement for transparency in the recruitment, selection and retention
process (Kalleberg 2018).
 The government initiative of workforce nationalization encourages the recruitment
practice of native-born candidates, which can restrict the recruitment and selection of
skilled labor (Chakroun and Ananiadou 2017).
 Increasing job opportunities in UAE market presents options for the existing
employee base.
 Increasing recruitment budget of competitors in the same segment.
The developments that can change the situations for the company are mentioned below:
 Incorporation of improved training and development practices can change the
situations. Appointing skilled/experienced manager for conducting the motivational
programs for the existing employees in PTP Soda drinks.
 Incorporating transparency in the system of retention and selection will allow the
company to build trust and loyalty among the workforce as well as it will attract fresh
flow of skilled employees (Bose and Banerjee 2017).

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 Improved flow of communication will enable the workforce to understand the
company objectives and will help the managers to align strategical implementations
with individual career expectations (Kalleberg 2018).
 Introduction of referral system which will allow the company to hire skilled
employees from networks, thereby ensuring employee retention and effective
selection process.
 The incorporation of industry support will ensure the selective hiring process for
skilled and specialized labor (Kalleberg 2018).
Response to question 2: Significance of ‘tight’ and ‘loose’ labor markets
Tight labor market is the situation when the economic state is closer to the
employment. In this scenario, the process of recruitment and selection becomes tough,
thereby placing an upward pressure on the wage structure. On the other hand, loose labor
market depicts the heavy supply of human resource in the search of job opportunities,
companies can hire desired number of skilled employees (Babb and Chorev 2016).
Tight and loose labor market act as an influencer for improving the creative approach
of resource strategies. For attracting skilled labor force recruiters will spent time and efforts
for improving the structure of organizational functions and reputation. Tight labor market
will be the driving force for the improvement in employee retention plans in the company.
The recruitment structure of the company will be improved for the purpose of attracting
skilled labor (Alvarez-Cuadrado, Van Long and Poschke 2018). The efforts of developmental
plans of employers will make the market loose with an increased possibility for selecting
quality workforce. Employment increases in the tight labor market. Tight market helps the
employees to have a bargaining power over the wage structure of the company whereas loose
market can influence the bargaining power of the employer.

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References:
Alvarez-Cuadrado, F., Van Long, N. and Poschke, M., 2018. Capital-labor substitution,
structural change and the labor income share. Journal of Economic Dynamics and Control,
87, pp.206-231.
Babb, S. and Chorev, N., 2016. International organizations: loose and tight coupling in the
development regime. Studies in Comparative International Development, 51(1), pp.81-102.
Bose, I. and Banerjee, J., 2017. Effectiveness of flexible staffing practices in selected small
size organizations in Dubai, UAE: an empirical study with reference to Atkinson’s Model.
Journal of Management in Practice (Online Only), 2(1).
Chakroun, B. and Ananiadou, K., 2017. Learning Outcomes World Reference Levels: Global
Solutions for Global Challenges. GLOBAL INVENTORY OF REGIONAL AND NATIONAL
QUALIFICATIONS FRAMEWORKS 2017, p.113.
Kalleberg, A.L., 2018. Changing contexts of careers: Trends in labor market structures and
some implications for labor force outcomes. In Generating social stratification (pp. 343-358).
Routledge.