Checkpoint: Historical Example of Labor Supply and Demand

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Checkpoint: Historical Example of Labor Supply and Demand
Desiree Brownell
XECO 212
2/15/2013

I chose to do my supply and demand response addressing the great depression. The great depression was a worldwide economic depression that started around 1929 and continued until about 1939. So far the great depression was and is the longest and most widespread depression that America has ever seen. During this particular point in history the demand for labor was higher than the demand for supply. America went through huge layoffs, employees were working for less, and companies where not hiring anymore. On October 29, 1929 the stock market crashed and there was billions of dollars lost by large businesses. The day the stock market crashed is still considered one of the defining factors and many hardships of the great depression.
The impact on supply and demand of labor on one sector of the labor market- One of the biggest impacts of the supply and demand sector of the labor market was unemployment. 25 percent of all workers and 37 percent of all nonfarm workers were completely out of work. Employers were no longer hiring and could not afford to keep as many employees. Businesses where declining, therefore they were unable to pay as many employees wages and could not hire either.
The factors that affected the labor demand and labor supply in the great depression where as I mentioned before unemployment, stock market crash, businesses no longer hiring, and employees were working for smaller wages. Furthermore, there are other factors such as the supply was still much higher than the demand. People that could not work were not buying supplies, the demand was not there but the supplies were.…...

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