When labour demand equals labour supply what will likely occur?
A) Work is outsourced to third party service providers
B) Vacancies are filled internally through training, transfers, or promotions
C) Managers would be asked to provide a downsizing plan
D) HR personnel would be instructed hire more recruiters
E) Compensation and benefits would be increased

Question

Quizplus · Accepted Answer

When labour demand equals labour supply, there are no surplus workers or job vacancies that need to be addressed. Thus, the likely course of action would be to fill any vacancies internally through training, transfers, or promotions, as opposed to outsourcing work or increasing compensation and benefits. Managers would not necessarily be asked to create a downsizing plan, nor would HR personnel be instructed to hire more recruiters, as there is no need to actively recruit new employees.

When Labour Demand Equals Labour Supply What Will Likely Occur