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[–] 2 points 9 months ago (1 child)

Wouldn't the market just expand to absorb the extra demand?

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  • [–] 2 points 9 months ago* (last edited 9 months ago)

    The demand for construction workers? If so, it could, if there's enough unemployment. Otherwise workers from some other industry would have to shift to construction. Creating a shortage in that industry. Switching industries is a more difficult process than getting an unemployed worker to work in construction though. But if there's already a labour shortage in the construction industry, then that answers the question. There isn't enough unemployment or shifting from other industries to fill the demand. And there seems to be one.

    If there's underemployment in construction or higher unemployment, then yeah, the construction labour market would likely expand without much effect in housing and infrastructure.

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