Answer to Question #151536 in Economics of Enterprise for Jasmine Daphne Diasanta

Question

What do you think will happen if there will be lots of job opportunities?

Answer 1

Three things will happen.

1.There will be more workhours. When you say “more than people”, you are not taking account of many people who are not part of the workforce for various reasons.

They could be retired people, or homemakers or students. Some of them will start working for money.

And, some people may put in over time.

So, work-hours will increase.

2. Wages would increase somewhat. You cannot get more workhours without paying more per hour.

3. Automation will accelerate. This is an ongoing process. It will simply speed up.

And, it is possible that illegal and legal immigration may increase.

Overall, the economy will shift to producing goods that can be automated or require more investment, and start importing goods that require significant amounts of labor.