Contents

• This report is based on the following requirement -
• Context:
• Traditionally, the study of economics is split into micro- and macroeconomics. This assessment requires the student to superimpose microeconomic concepts onto the broader macro-environment where business and leadership thinking abound. To do this effectively, the student will engage in deep, critical thinking on both technical and high-level issues as they demonstrate a thorough understanding of the market, estimate demand and then apply research and synthesis skills to illustrate current and historical thinking on labour and the nature of work in the context of contemporary social settings.
• Instructions:
• The student will perform a labour market analysis to give a traditional overview of the market and will then discuss how findings apply to everyday life and society broadly. In the analysis students are expected to demonstrate an understanding of traditional market theory and of economic methods, followed by a critical discussion informed by research. Assessment 1 should take the form of a consultative report which includes the following elements:
•  An introduction and context for the report;
•  A critical discussion of traditional supply and demand including their nature;
•  A regression analysis using the data provided and forecast future conditions;
• ECON6000 Assignment One Brief Page 1 of 4
•  A critical analysis founded on research into the concepts of nominal and real wages and their interrelationship;
•  A drawing together and synthesis of the arguments of the report into a convincing conclusion.

Description

Australian labor market has seen significant and constant changes because of impact of external and internal environmental factors (Australian Government, 2015). The random forces for change in the supply and demand of labor is due to changes in tastes and preferences, rapid technological advancement, government policies, trade conditions across the world and aggregate demand (Freeman, 2007). Over a period of time the external forces have induced changes in decisions of firms to hire labor, changes in required skills and responsibilities. Similar to other markets the labor market also has to adjust to shifts in supply and demand curves based on the combination of price flexibility, adjustment in quantity in terms of changes in vacancies or unemployment or by quality changes (Hubbard et al., 2012). The labor market was highly regulated in the earlier times and the government had increased control on hiring practices and pricing. This report critically discusses the traditional demand and supply of labor market. The report further analyzes changing trends in the demand and supply of labor market.