Refer to Scenario: Canadian Engineering Shortages.The situation described in this scenario can be referred to as a tight labour market.What occurs in a tight labour market?
A)The supply of labour exceeds the demand for labour.
B)Labour supply and demand creates tension in the labour market.
C)The demand for labour exceeds the supply of labour.
D)Supply and demand create labour shortages.

Question

Quizplus · Accepted Answer

In a tight labour market, the demand for labour exceeds the supply of labour. This means that employers may have difficulty finding workers with the necessary skills and experience to fill job vacancies, resulting in labour shortages. The result may be increased competition for workers, leading to higher wages and potentially higher inflation.