shifts in supply curve of labour

« Back to Glossary Index

A shift in the labour supply curve happens when the amount of labour workers are willing and able to provide changes at every wage level. This is caused by factors other than the wage itself.

It is important to note that a change in wages only causes a movement along the existing curve, not a shift.

Factors that shift the supply curve to the RIGHT (Increase):

  • Growth in the working-age population.
  • Higher rates of people entering the workforce.
  • Easier access to jobs (e.g., simpler licensing requirements).
  • Better access to education and training.
  • Increased immigration of workers.
  • Reduced restrictions by unions.

Factors that shift the supply curve to the LEFT (Decrease):

  • Decline in population or an ageing workforce.
  • Lower rates of people participating in the workforce.
  • Stricter or more complex occupational licensing.
  • Increased emigration (workers leaving the country).
  • Cultural or social changes that discourage working.