Historical Example of Labor Supply and Demand Essay

Historical Example of Labor Supply and Demand - Essay Example Following this depression, demand for labor in the United States declined, and employers retrenched workers in order to remain operational. As a result, employment in the United States hit 25% while other countries around the world recorded unemployment of up to 33% (Cravens, 2009). Moreover, the persistent decline in labor demand led to an increased level of labor supply, with few employment opportunities available in the labor market. The labor market trends experienced during the Great Depression were explained by the economic performance of the United States and that of the world in general. Stock market failures around the world meant that consumption and investment were adversely affected. Business operations deteriorated and the need to hire labor declined significantly. On the same note, the profit motive exhibited by firms had to have a negative effect on labor demand and supply in the light of the