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A human resources department must know if the wage rate is stable, will increase or decrease. If equilibrium exists, wages are stable, if excess demand exists; wages will increase and if excess supply exists wages will decline. After this assignment the student will be able to determine if equilibrium exists and the future for wage rates for a given position.
Analyze the labour situation within your industry for a particular occupation (if you work in a unionized environment, select an occupation that is not unionized) and discuss whether an equilibrium situation exists. If equilibrium does exist, please illustrate why, and if the market is not in equilibrium, please explain why. State the current market wage and the expected future wage rate. Justify your future wage rate. If the market is not in equilibrium, explain what the firm or government can do to generate equilibrium.
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