8.3.3—Labour demand shifts/movements

A movement along the labour-demand curve follows a change in the wage, holding other conditions constant. A shift changes demand at every wage because product demand, productivity, output price or complementary inputs change.

State the changed variable before drawing. A wage rise usually reduces quantity of labour demanded; higher product demand can shift the whole curve right even if the wage is unchanged.

A café hiring fewer workers after the hourly wage rises is a movement. A festival that increases demand for meals shifts the café’s labour demand right.

A new employment equilibrium does not by itself prove a labour-demand shift; compare the determinant, not just the observed quantity.