Section 4: The labour market

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Planning

1. Intro

2. Theory section 4

3. Wrap up

4. Homework section 4 (selected exercises)

1. Provide two reasons why businesses like to employ young people.
2. Why is selling so important?

Supply and demand on the labour market

Supply of labour: people who perform paid work plus people who are looking for paid work (more than 12 hours a week)

Demand for labour: looking for employees by the companies

Supply of labour

Demand for labour

Gerard works at Philips

Anne is loooking for work as a nurse

Philips is looking for production workers

A vacancy is posted in the supermarket: we are hiring shelf-stackers.

The collective agreement

An agreement in which all employees of a (large) company or an entire industry share the same agreement with their respective employer(s).

Dutch word: collectieve arbeidsovereenkomst

Excess supply

Collective agreements make sure that that wages do not drop in times of excess supply. 

Excess supply means usually drop down of prices (remember chapter 2?)

1. Why do Polish workers often work for a lower wage?
2. Provide two examples of benefits of having Polish workers here
3. Provide two examples of negative effects of having Polish workers here.

Minimum wage

The minimum gross pay that employers are obliged to pay.

Why? To protect the employee.

Give one advantage and one disadvantage of minimum wages in the Netherlands

What did I learn?

Which elements/ concepts
need more explanation

Homework

Exercise 2, 6 to 11, 13, 14, 16 and 17