> When you add excess labour to the closed system (The whole of the US labour market) it will inevitably reduce demand as companies looking to fill roles are more easily able to do so.
An increase in supply will result in an increased supply. But as I've said in another response--adding people to the economy also tends to increase the aggregate demand for labor. It's not a simple function.
An increase in supply will result in an increased supply. But as I've said in another response--adding people to the economy also tends to increase the aggregate demand for labor. It's not a simple function.