Labor Market Scenario
For this scenario, I have chosen write about the health care industry and topics that would cause a shift in labor supply and demand because I have worked in this industry before for over 12 years.
According to Wallis, L. (2006) areas of employment that would cause a shift in labor supply and demand in the health care industry include but are not limited to:
Physician work force.
Registered nurse work force.
Licensed practical nurse work force.
Direct care workers.
Certified nursing assistant work force.
Home health and personal care aid work force.
Medical assistant work force.
According to Wallis, L. (2006) some reasons for a shift in labor supply and demand in the health care industry include but are not limited to:
Industry Trends: specific developments in the industry that give an understanding to the future of the health care industry i.e. government, health care, regulatory trends etc.
Demand for Workers: industry need for physicians, nurses, janitors etc. to maintain a constant operating environment.
Population Shifts: demographic trends that influence future the future of the health care industry i.e. immigration, old age, retiring workers etc.
Occupational Trends: specific developments in the areas of employment that give an understanding to the future of the health care industry i.e. physician work force, licensed nurse work force etc.
The health care industry has had a steady increase in labor demand over the last several years. "Nursing shortages are expected to increase from 6 percent in 2000 to 29 percent by 2020" (Wallis, L. 2006). Consequently, the increase in labor demand (shift to the right) will cause a significant decrease of labor supply (shift to the left) in the health care industry by the year 2020.
As labor demand increases and labor supply decreases the equilibrium of the labor...