Low unemployment labor market conditions in an industry result in which of the following effects on compensation practices in that industry:
A) higher pay that attracts new entrants
B) a shift to nonlabor alternative
C) an influx of job seekers
D) offshoring
E) All of the above are effects that occur in this market

Question

Quizplus · Accepted Answer

Low unemployment in an industry often leads to higher pay to attract and retain workers, a shift towards non-labor alternatives such as automation to reduce dependency on scarce labor, an influx of job seekers attracted by higher wages, and offshoring to find labor in markets with higher unemployment.

Low Unemployment Labor Market Conditions in an Industry Result in Which