You are asked to give an advice on employment related issues. Your

task is to analyse the effect of quasi-fixed labour costs on the demand for

labour. In the report that you prepare, you should cover the following

points.

A) With concerns about high unemployment, explain why overtime

is prevalent even though employers could be meeting their labour

force needs by hiring unemployed workers. Do you have any

policy recommendations that deals with the growing concern of

using casual and part-time labour rather than full-time labour?

Support your answers with help of diagrams and give intuitive

explanations.