Supply side factors affecting Employment


Supply-side factors include:
1/ Incentives to search for and then accept paid work (frictional U)
2/ Skills of the labour force (human capital)  (structural U)
3/ Impact of changes in geographical mobility of labour (structural U)
4/ Impact of changes in net migration of workers into the economy 
5/ Importance of the availability and cost of child care as a factor affecting the ability of parents to seek and find work
6/ Changes in state retirement ages and investment in further and higher education
*Students should be able to analyse and evaluate these determinants with the help of production possibility curves and AD/AS diagrams. 
*Students should also understand the terms cyclical, frictional, seasonal and structural unemployment.
*There should be an understanding of the output gap in relation to economic growth, unemployment and the price level