Labor Market Structures

Curbside Pickup

Cloud 9 is offering curbside pickup so that their lazier customers can have a better shopping experience. Monopolistically competitive firms often compete on non-price aspects, so offering curbside pickup may entice new customers to increase their demand. Since they aren’t hiring more workers, the employees are now required to work more, which they don’t see as fair. This increased demand following curbside pickup should result in an increased demand for labor, but the workers only seem to be working more.

Labor Unemployment

Seasonal Help

It’s the holiday season and Cloud 9 needs more help. Labor is a derived demand, which means when customers demand more products, the firm needs more inputs. This temporary employment will also affect the unemployment rate in the local economy. After the holidays are over, many of the new hires will be released.

Labor Supply & Demand

Handheld Automation

Corporate has created new devices for customers to use that will allow them to look up where items are located in the store, scan the items, and pay for their total. The employees quickly point out that the device essentially replaces the workers and they are left wondering what that means for them. Dina tries to point out the relationship between ATMs and bank tellers, although she doesn’t have it exactly right.

At the end of the clip, Amy points out that corporate has also asked the stores to cut back employee hours, which implies that the new machines are replacing some of the labor in the store.