Analyze the following predictions made for the current state of the labor market:
A) “labor markets will have more monopsonies, with a single dominant employer. But also will have more labor unions representing workers. So the net result on equilibrium wage (W*) rates could go up or down (ambiguous, indeterminate).”
B) “employers’ demand for labor will continues to rise, then both the level of wage (W*) rates and quantity of employment and work hours (QL*) will rise, in labor markets where there is pure competition conditions.”
C) “labor shortage conditions will continue and unemployment rates will keep declining in 2022, due to the combination of frictional, cyclical and structural sources of unemployment, however, they will likely increase in 2023.”
D) “employers will accelerate the automation of some jobs–capital for labor substitution–in order to to pay fewer workers and reduce their labor costs.”
