What r the "factors" that causes tight labour market?
Answer:
There are many, many factors. We can divide them into supply and demand factors.
If businesses are doing well, they will compete for labor. If the businesses are doing really well, this increase in demand for labor will cause wages to rise.
The supply of labor is caused by many factors -- economic and cultural. For example, if more women decide to stay home with children, or if welfare benefits become too generous, then the supply of labor will contract. This, again, will push up the average wage.
overheating economy - everybody who could work, already does.
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