Labor Market Considerations Essay

Labor Market Considerations Essay

Labor Market Factors

There are several characteristics of a labor market of an area that a firm needs to consider before it can start operations there. Labor-market-oriented factors that a manufacturing and assembly facility must consider before opening up in the United States are the labor market policies and regulations of the many different states. These factors are especially complicated in the United States because each state has a different set of policy guidelines, from Civil rights to minimum wage legislation that it must follow in the labor market (Dreher & Dougherty, 2001). This is also an exceptionally important consideration for a manufacturing plant because health policies and legislation are generally more intense in this industry.

This facility must also consider the trade unions and their strength. They must consider the supply of labor; its availability, their skills and the appropriateness of their skills for the organization. They must determine whether the employees’ values, interests and attitudes will mesh up with the organization’s corporate culture as these vary across cultures. The facility, most importantly, will also look at the wages and the wage structure of the area, to analyze labor costs (determined by supply and demand).


Jackson, Mississippi, has an attractive labor market. This is because first of all, its workforce is said to be readily adaptive to changes, and technology. Secondly, wages are lower than the national average (City Data, 2009). However, according to historical data of 2003, only 7.6 percent of the workforce was employed in the manufacturing industry (City Data, 2009). As of April, 2009 Jackson has an employment rate of 10.2 percent.

Buffalo, on the other hand, has a rate of 19.3 percent (Labor Market Information Center, 2009). This city was a manufacturing hub but this trend has seen a sharp decline in the past few years and will continue to do so until 2012 with a projected 5000 redundancies (City Data, 2009).As of 2004, 12.1 percent of the workforce was employed in the manufacturing industry (City Data, 2009).

Based on this research, I would conclude that Jackson offers the strongest labor market for this type of facility. This is because it shows potential for growth and the labor force’s attitude is positive. Also, they can readily adapt to technology which is a plus in manufacturing. Buffalo’s manufacturing labor force, on the other hand, is on a decline. Redundancies will cause further union and legislative problems.


(2009) Jackson: Economy. Retrieved on June 13, 2009, from City Data

(2009) Labor Force Statistics. Retrieved on June 13, 2009, from Labor Market Information Center

(2009) Buffalo: Economy. Retrieved on June 13, 2009, from City Data

Dreher & Dougherty (2001) Human Resource Strategy. McGraw-Hill.

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