ABSTRACT
This chapter aims to use economic theory to give managing people some concepts that will help managing people to understand how hospitality labour markets work and how its occupations are valued and priced. It explores the work nature in hospitality and what that means for labour markets and the crucial role of uncertainty in labour pricing. The chapter presents the difference between internal and external labour markets and the way in which the nature of a job foretells the market it exists in. Notwithstanding the size of the labour markets, managers have at their disposal a wide range of tools for meeting the problems of labour markets; for example increasing pay, more training, altering hiring standards, promoting from within, plus many more. There are some characteristics of labour markets, and the nature of any job foretells where that job sites within the labour market structures. Characteristics of labour markets are: size, status, and response to supply and demand changes.
