World War I created a labor shortage in America as many young men shipped off to war. How did the labor shortage allow for employees to improve their working conditions? Responses They went on strike and their demands were quickly met so wartime production could continue. They went on strike and their demands were quickly met so wartime production could continue. The shortage allowed employees to demand, and receive, increased wages that kept pace with inflation. The shortage allowed employees to demand, and receive, increased wages that kept pace with inflation. They agreed not to strike in exchange for being able to organize and use collective bargaining. They agreed not to strike in exchange for being able to organize and use collective bargaining. Employers voluntarily improved wages to entice more people to work at home, rather than enlist in the army