Demand for labour

Q6(b) Using Extract C, examine two ways greater automation changes how much labour employers demand.

Q3 Deduce the labour market effect of Japan paying builders to renovate older Kyoto housing in 2024.

Q3 Identify why labour demand in French shipbuilding is fairly unresponsive to wages, at -0.88.

Q5 Identify what shapes how responsive demand for South African farm labour is, given an estimate of -1.32.

Q5 Identify why Australian construction labour has a demand elasticity of only -0.18.

Q6 The elasticity of demand for South African agricultural workers is about -0.3. Identify the most likely reason. (labour hard to replace with capital / high wage rates / price elastic demand for the final product / low productivity)

Q4 American Airlines' revenue fell from $45.77bn to $17.34bn in 2020 and it made 31 000 staff redundant. Identify the most likely reason. (more passengers / derived demand for labour fell / higher employment subsidies / lower taxation on employees)

Q4 Pick the factor that affects labour demand elasticity (size of population / welfare payments / labour's share of a firm's total costs / immigration rules).

Q6 Which factor makes labour demand more elastic: wages forming a large share of costs, capital substituting poorly, lengthy training, or inelastic product demand?