Micro Economics Article 2022

Running Head: MICRO ECONOMICS
MICRO ECONOMICS
Name of the Student
Name of the University
Author Note

1MICRO ECONOMICS
Table of Contents
Labor Market..............................................................................................................................2
Reference....................................................................................................................................3

2MICRO ECONOMICS
Labor Market
The article by Lily Roberts has stated that after great recession, the unemployment
remains low in US but major workers have not availed the benefits of tight-labor market. The
top line numbers of the job does not always indicate that whether the wages are paid to the
workers. It allows them for moving out to the poverty. Further, the policy makers’ focuses
more jobs rather than on income, wages as well as wealth, ignoring the experiences of the
economy by the workers as well as families. Historically, the lower unemployment does not
have increased the wages beyond the level. This has resulted into the poverty of the families.
The policy makers need to consider certain other ways for economical sustainable growth
(BNN, 2019).
The labor market is defined as that place where the workers as well as the employees
interact with each other. It is concerned with the economy function with the supply and
demand of labor. Further, in labor market, the labor demand is demand for the labor by
companies as well as supply is labor’s supply of workers. This demands as well as supply of
labor in the market are mostly influenced by the changes in the power of bargaining. In this
context, for the assessment of the economic health, the economic indicators are important.
The federal government is required to focus more on unemployment gaps and the trends of
long-term earnings (BNN, 2019).
The strength of this article is focus on the conservative legislation that have struck
down the proposals for increasing the statewide minimum wages as well as constraining the
abilities as well as countries for developing for increases own levels of minimum wages. The
weakness of this article is that it has not considered the federal government aspects of the
facts provided regarding tight labor market. Lastly, the article exhibits positive economic

3MICRO ECONOMICS
reasoning. It is because of the opinion of the author that growth of wage is attributable to the
change in policy not theoretically implications of tight labor market (Joll et al. 2018).
Reference
BNN. (2019). U.S. jobs report shows labour market cracking, but not crumbling - BNN
Bloomberg. Retrieved 26 September 2019, from https://www.bnnbloomberg.ca/u-s-
jobs-report-shows-labour-market-cracking-but-not-crumbling-1.1312231
Joll, C., McKenna, C., McNabb, R., & Shorey, J. (2018). Developments in labour market
analysis. Routledge.