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Labor Demand and Supply for AT and T

By kapil May 13, 2010 308 Words
AT&T wireless is the second largest provider of mobile services in the US. There are several factors that affect labor demand and supply for the company. The labor demand depends on the performance of the company and its strategic plans. When the company is expanding its operations, it will need more labor. Also when it wants to introduce a new feature, it will need Research & Development teams to develop these features. Apart from this, the labor demand depends on the level of automation used by the company. If some new machine is introduced or some new process is discovered to do tasks more efficiently, the need of labor will decrease. When the economy is in a recession or the company is facing cost pressures, it will have to reduce its employees. AT&T wireless will also have an increased demand of labor on temporary basis, for example when it has to repair a major installation. The supply of labor will depend on the general economic conditions and the options available to people. When, the economy is booming there are plenty of jobs available. Also, the actions of its competitor will determine the supply of labor for AT&T wireless. If a competitor is on an expansion spree, it will want the same people as they have the necessary skill set, thus reducing the supply of labor. The labor supply will also depend on the alternatives available to people, for example if satellite phone technology becomes popular it will take away a lot of potential labor from the wireless sector. In the long term, the labor supply depends on the demographics and the education levels of the population. The labor supply also depends on government policies on immigration and outsourcing. If the government allows foreign workers to be employed by the company, its labor supply will increase.

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