What causes the labor supply curve to shift?
Changes in market wages cause a movement along the labour supply
curve, adjusting employment levels for certain wages; whereas
shifts of the curve will change employment levels at any given
wages. Shifts are caused by: changes inthe demongraphic: which can
affect supply of labour of certain age groups, the low bitrth rate
of the 70s has decreased tge supply of young labour in the 90s,
atany given wage. sectoral changes: the service industry and
low-pay sectors employ increasingly high proportions of young
people. The increasing emphais on skill attainment means that young
people are unlikly to be demand in high-level jobs, who offer them
uncompetitive wages, hence more will be attracted tothe sector
where the respective demand is higher. Sectoral shifts can shift
supply curve.