Conditions for entry and exit in any market structure depends on the forces of demand and supply. The employees are the source of supply whereas the industry is the source of demand. Labor market information helps to determine when to change the kind of a service, or the provision of the service is no longer economical (Ehrenberg & Smith, 2017) . The condition of entry and exit of the labor market in the service provision depends on the availability of demand from the consumers. A firm need to provide services to consumers. The requirement for entry depends on factors such as labor cost and market wage rate. Ideally, when the market offers a significant market consumption, labor entry in the market is high.
The strong demand for service creates a need for labor to offer more services. However, with high demand for work, employers tend to limit the number of employees as a result of high wage rate. Hence, unskilled labor exits the market because they are no more productive (Ehrenberg & Smith, 2017) . Skills improve the demand for service because skilled persons are more productive and efficient. On the other labor supply is determined by the labor force available. Additional entry of new labor in the market depresses the wage rate that the employer is willing to pay.
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An exit of work within the industry is influenced by low wage rates. The consequences are, workers leave the labor force and are discouraged from offering the services. Availability of demand is the determining factor of labor in the market (Flinn, 2015) . As a new entrant in the offering services, availability of a market for the service is the condition to consider before entering the market. The skills and wage rate that the market is willing to offer regulate the demand. Therefore, it will have a direct influence on the choice of the job for a new entrant.
References
Flinn, C. (2015). The Minimum Wage and Labor Market Outcomes . Massachusetts: MIT Press.
Ehrenberg, R., Smith, R. (2017). Modern Labor Economics: Theory and Public Policy . New York. Routledge.
