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Labor Market: Job Location And Internal & External Issues

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For the job description that I developed last week, selecting a labor market where the job will be located is need to be done. This paper describes the labor market examining the principles of market demographics for the labor market. It further explores the alternative approaches for designing jobs and increasing employee efficiency and motivation including job analysis. Two of the foundation strategies in running an organization’s human capital base are to play both competitively and cost-effectively.

Labor Market for Job Location

A labor market is a calculation of ongoing rates of pay related to different jobs that are for supply and demand. These supply and demand jobs are for employees who have those skills to deserve that work. The market rates for all works depend on geographical location, size of the company and different degrees. Managerial jobs mainly depend and are sensitive to the size of the company. On the other hand clerical, technical support and some professional and administrative and middle management works mainly depend on and are sensitive to the location of the company. There are cases were an accountant may be paid 8-12% more in Oakland compared to California which is just 90 miles away. There have been many comments by various compensation analysts that with time it is getting difficult to find dependable pay data that accurately relate to different locations contained by an important metropolitan area. There are various opinions from various people that salaries in Silicon Valley is higher compared to Marin Country, salary is more is Los Angeles compared to Sam Diego. Therefore it can be seen that one cannot know without proper knowledge about specific job-by-job location.

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Market Demographics for Internal & External issues in the Market

In case of an internal labor market workers are hired to entry level jobs but higher level jobs are filled from within the organization. Wages determined are mostly free of market influence. In case of external labor workers move between organizations and wages and salaries are determined by several aggregate process where the organizations do not have any discretion on the wage setting. There are many internal influences that effect internal and external matters of an organization. In case of service business the quality as well as the capacity of their workforce matters a lot. For example, a motivated and well trained staff will work better. The productivity of the business, their operations, capacity management is also an important inter factor that has an influence. Changes in market size, growth and segmentation also have an influence on the requirement of labor force. Other external factors like rapid technological changes and changes in legislation have major implications for markets. Free labor market creates strong regulations on the capability of organizations to fix salaries and wages.

Recruitment Strategy for this market

Below are the recruitment strategies for the position with the use of demographics of the labor market:

  • It is significant to maintain the job descriptions in progress and analyzing it.
  • Using diverse analysis of sources for every job may bring differences.
  • Using precise identical criterion such as site, profits & business.


Sounds to be uncomplicated, but until or unless someone knows to chose and use local labor market statistics properly for building right plans, one might not be paying his employees properly or overpaying the others. Being a recruiter, it is extremely significant to shell out viable earnings & wages which will draw & keep hold of recruits. It is to identify “viable” meaning in a company. This usually is on a basis of the amount of complexity, & at times internal and external diversity issues of the market, together with comparatively effortless or else complicated position filling situations.


  1. St. Louis Fed. (2019). The Labor Market – The Economic Lowdown Podcast Series, Episode 10. Retrieved 30 January, 2019 from
  2. Lisenkova, K. (2010). Special Section: Economics of an Ageing World, Demographic change and labor markets. Retrieved 30 January, 2019 from
  3. U.S. Dept. of Labor. (2019). Labor Force Statistics from the Current Population Survey. Retrieved 30 January, 2019 from

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Labor Market: Job Location And Internal & External Issues. (2022, February 21). Edubirdie. Retrieved February 1, 2023, from
“Labor Market: Job Location And Internal & External Issues.” Edubirdie, 21 Feb. 2022,
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