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  • Labour markets

Click to read the article below and then answer the questions:

UK wages: which sectors are driving up pay?

  • According to the FT, how much further will the UK base rate rise before it reaches its peak?

  • Explain what is meant by a tight labour market

  • “Although the tightness of the UK labour market is easing, demand for workers still far outstrips supply.” Using a labour market diagram, analyse the effects of these market conditions on the wage rate

  • Distinguish between i) nominal wages; and ii) real wages

  • Identify two causes of labour shortages

  • Explain why a rise in the minimum wage has significant consequences for the hospitality sector

  • For each of the sectors identified in the article, compare nominal pay rises with real pay rises

Gavin Clarke, Emmanuel College

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