Task 4 Business leaders often say that there is a shortage or skilled workers.

Business leaders often say that there is a “shortage” of skilled workers, and so they argue that immigrants need to be brought in to do these jobs. For example, a recent AP article was entitled “New York farmers fear a shortage of skilled workers,” and went on to point out that a special U.S. visa program, the H-2A program, “allows employers to hire foreign workers temporarily if they show that they were not able to find U.S. workers for the jobs.”  

a. How do unregulated markets cure a “labor shortage” when there are no immigrants to boost the labor supply?           

b. Why are businesses reluctant to let unregulated markets cure the shortage?

SAMPLE SOLUTION

Task 4 Business Leaders often say that there is a Shortage of Skilled Workers
How do unregulated markets cure a “labor shortage” when there are no immigrants to boost the labor supply?
Unregulated labor market refers to situation where the forces of demand and supply are allowed to determine the wages without external interference. Generally, workers will always go for better pay while employers will always seek to engage the most skilled employee. When the supply of skilled labor is high, the employers tend to offer lower salaries Cassey et al., 2018). On the other hand, when there is a shortage of skilled workers, the few qualified workers tend to demand higher salaries. If immigrants are not allowed to boost the labor supply, the available skilled labor continue to enjoy…