Two causes of an increase in the quantity of labour are:
- more favourable labour laws
- an increase in immigration into a country.
What are the causes of an increase in the quantity of labour?
When the quantity of labour increases, it means that the labour available in the labour market has increased. An increase in the quantity of labour is sometimes a positive indicator because it means that more production activity can be undertaken.
When a government enacts favourable labour laws, it encourages discouraged workers to re-enter the labour force. For example, if the government increases the minimum wage, more people would be encouraged to work.
Also, immigration increases the quantity of labour. Immigration is when people move from one country to another.
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