AQA · Microeconomics · The labour market

AQA Economics past paper questions: The labour market

Every AQA question on The labour market from 2017 to 2025: 5 essays, 28 data response questions and 21 multiple choice questions. It covers Labour demand & supply, Trade unions & monopsony, Discrimination & pay gaps, Technological change and Minimum wage. Each question links to its paper, mark scheme and examiner report.

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SubtopicsLabour demand & supply 36Trade unions & monopsony 13Discrimination & pay gaps 9Technological change 5Minimum wage 5Inequality & poverty 2Unemployment 2Government intervention (micro) 1Perfect competition 1

Essay questions on the labour market

A-level Paper 1, June 2023, Q11Explain15 marks
Explain the determinants of the supply of labour to an industry.

Examiner insight

What to cover
Supply of labour to an industry depends on the wage, non-wage benefits (conditions, flexibility, job security), required skills and training time, labour mobility, the working population and migration, and wages in other industries.
Watch out
Separate a movement along supply (wage changes) from shifts (other factors).
Question paper p.6Mark scheme p.19Examiner report p.7Open in the tool

Data response questions on the labour market

A-level Paper 1, June 2024, Q7To what extent9 marks

Context 2: Trade union membership and industrial disputes

Extract E (lines 9–10) states that ‘In November 2022, 13.3% of businesses reported experiencing a shortage of workers leading to upward pressure on wages’. With the help of a diagram, explain how and to what extent a shortage of labour is likely to affect the wage in a competitive labour market.

Examiner insight

What to cover
A shortage of labour means demand is above supply at the current wage, so the wage rises. How far it rises depends on the elasticity of labour supply and demand.
Watch out
The question says "to what extent": use elasticity to answer it.
Question paper p.5Mark scheme p.13Examiner report p.6Open in the tool
A-level Paper 1, June 2024, Q8Evaluate25 marks

Context 2: Trade union membership and industrial disputes

Extract F (lines 12–13) states that ‘Collective pay bargaining, reinforced by the threat of strikes, has achieved some notable successes for workers’. Using the data in the extracts and your knowledge of economics, evaluate the view that trade unions improve the operation of labour markets by protecting the interests of workers.

Examiner insight

What to cover
Unions can raise pay, improve conditions, correct monopsony power and give workers a voice.
Watch out
Use the data on strikes and pay in the extracts.
Question paper p.5Mark scheme p.15Examiner report p.6Open in the tool
AS Paper 1, June 2024, Q28Calculate4 marks

Context 2: Eye care in the UK

Extract E (lines 2–3) states: ‘Between 2004 and 2019, the number of optometrists... in England rose from 7 734 to 14 087’. During this time, the population of England increased from 50.2 million to 56.3 million. Calculate the percentage change, between 2004 and 2019, in the number of people in England for each optometrist. Give your answer to one decimal place.
Question paper p.24Mark scheme p.13Insert p.1Open in the tool
A-level Paper 1, June 2023, Q7Explain9 marks

Context 2: In-work poverty in the United Kingdom

Extract E (lines 19–20) states that ‘Some out-of-work benefits have not kept up with inflation, putting downward pressure on wages, contributing to the rise in in-work poverty.’ With the help of a diagram, explain how a reduction in out-of-work benefits may lead to lower wages in some labour markets.

Examiner insight

What to cover
Lower out-of-work benefits make unemployment less attractive, so more people look for work. Labour supply shifts right and the wage falls in low-paid markets.
Watch out
Link benefits to the incentive to work, then to labour supply, then to wages.
Question paper p.5Mark scheme p.13Examiner report p.5Open in the tool
AS Paper 1, June 2023, Q31Explain10 marks

Context 2: Drones

Extract E (lines 8–9) states: ‘Drones can reach remote areas quickly and easily, saving on labour and other costs.’ Explain how the increasing use of drones is likely to affect the market for delivery workers.

Examiner insight

What to cover
Drones replace delivery workers, so demand for delivery workers falls, and wages and employment fall.
Watch out
Explain derived demand.
Question paper p.26Mark scheme p.16Insert p.1Open in the tool
A-level Paper 1, June 2022, Q3Analyse9 marks

Context 1: Flexible labour markets and trade unions

Extract C (lines 4–5) states that, as a result of trade union action, ‘The hospital trust increased their £8.21 minimum wage to the London Living Wage of £10.75.’ With the help of a diagram, analyse how a trade union might achieve higher pay for its members.

Examiner insight

What to cover
A union can bargain for a wage above the market rate. In a competitive market this raises pay but can reduce employment. Where the employer is a monopsony, a union wage can raise both pay and employment.
Watch out
The monopsony diagram shows why a higher wage need not cost jobs. It is the key analytical mark.
Question paper p.3Mark scheme p.7Examiner report p.3Marked student answers p.3Open in the tool
A-level Paper 1, June 2022, Q4Assess25 marks

Context 1: Flexible labour markets and trade unions

Extract B (lines 16–18) states that, ‘Gig economy defenders claim that today’s flexible labour markets offer modern workers the opportunity to move freely between jobs and this gives them more choice over their working hours.’ Assess the view that government intervention in the UK labour market is necessary to protect the interests of people who are working in the gig economy.

Examiner insight

What to cover
Gig workers face insecure hours, low pay, few employment rights and weak bargaining power. Intervention: minimum pay rules, worker status law, sick pay, support for unions.
Watch out
Use the extract on the gig economy and new unions to support both sides.
Question paper p.3Mark scheme p.9Examiner report p.4Marked student answers p.9Open in the tool
A-level Paper 1, November 2021, Q7Explain9 marks

Context 2: The ethnic pay gap

Extract F (lines 18–19) states: the Government ‘could also take steps to recognise foreign qualifications, thus removing obstacles for well-qualified foreign-born workers.’ With the help of a diagram, explain how UK firms not recognising foreign qualifications may lead to some ethnic groups receiving lower pay.

Examiner insight

What to cover
Not recognising qualifications lowers productivity as seen by firms, so demand for those workers falls, or they work in lower-paid jobs.
Watch out
Link the diagram to the occupational choice of those workers.
Question paper p.5Mark scheme p.12Open in the tool
A-level Paper 1, November 2021, Q8Evaluate25 marks

Context 2: The ethnic pay gap

Extract E (lines 3–4) states: ‘significant pay gaps remain, even when education and occupation are taken into account, particularly for those born outside the UK.’ Using the extracts and your knowledge of economics, evaluate possible government policies to reduce the ethnic pay gap.

Examiner insight

What to cover
Match policies to causes. Discrimination: equal pay law and enforcement, pay gap reporting. Skills and qualifications: recognition of foreign qualifications, training. Occupational segregation: careers advice, mentoring. Regional factors: regional policy.
Watch out
A list of policies with no link to a cause stays in the middle levels.
Question paper p.5Mark scheme p.14Open in the tool
A-level Paper 1, November 2020, Q7Explain9 marks

Context 2: The adult social care market

Extract E (lines 5–7) states: ‘Until the 1990s, almost all workers in the care sector were employed by the government, which acted as a monopsonist by keeping wages low.’ With the help of a diagram, explain how a monopsonistic public sector can lead to low pay for social care work.

Examiner insight

What to cover
A monopsony employer pays a wage below MRP and employs fewer workers than a competitive market.
Watch out
Draw the MCL curve correctly and read the wage from the supply curve.
Question paper p.5Mark scheme p.12Examiner report p.4Open in the tool
A-level Paper 3, November 2020, Q33Recommend25 marks

Case study: Changing living standards and inequality in the UK

After considering Extract D, and the original evidence in Extracts A, B and C, would you recommend that the government implement a further substantial increase in the National Living Wage? Justify your recommendation.

Examiner insight

What to cover
A higher NLW raises pay for low earners and may raise productivity.
Watch out
Clear recommendation using the extracts.
Question paper p.27Mark scheme p.9Insert p.2Examiner report p.4Open in the tool
AS Paper 1, June 2019, Q31Explain10 marks

Context 2: Dental care

Extract E (line 9) states: ‘a growing population is increasing the demand for dental care.’ Explain how the increasing demand for dental care is likely to affect the market for dentists.

Examiner insight

What to cover
Demand for dentists is derived from demand for dental care. Higher demand for care shifts demand for dentists right, so wages and employment rise.
Watch out
Explain derived demand clearly.
Question paper p.26Mark scheme p.16Insert p.1Open in the tool
A-level Paper 1, June 2018, Q7Explain9 marks

Context 2: Automation and the Labour Market

Extract E (lines 4–5) claims that workers in the 18th century saw wages rise in line with productivity. With the help of a diagram, explain how advances in modern technology are likely to lead to rising wages in some industries.

Examiner insight

What to cover
Technology raises labour productivity, so MRP rises and labour demand shifts right. Wages rise where workers are complements to technology.
Watch out
Say which industries: those where technology complements labour, not replaces it.
Question paper p.5Mark scheme p.13Open in the tool
A-level Paper 1, June 2018, Q8Evaluate25 marks

Context 2: Automation and the Labour Market

Extract E (lines 14–16) states that ‘The market economy is not going to create the jobs by itself for those workers who are most affected by the change.’ Extract F (lines 4–5) states that ‘taxing productivity-enhancing tools like robots or machines makes no economic sense.’ Use the extracts and your own knowledge of economics to evaluate whether governments should allow markets to respond freely to the opportunities and challenges presented by technological progress, without any state intervention.

Examiner insight

What to cover
Free-market view: markets reallocate labour, create new jobs, and fund innovation.
Watch out
The question says "without any state intervention". An absolute view is easy to evaluate.
Question paper p.5Mark scheme p.15Open in the tool
A-level Paper 1, June 2017, Q7Explain9 marks

Context 2: The gender pay gap

Extract E (lines 22–23) states that ‘The tendency for women to participate in low-productivity sectors is now a bigger factor in their low pay than discrimination’. With the help of a diagram, explain how the difference between the marginal revenue product of male and female workers might account for the lower average earnings of women.

Examiner insight

What to cover
Wages in a competitive market are set where MRP meets supply. Lower productivity sectors give a lower MRP and lower pay.
Watch out
Define MRP as MPP multiplied by MR. Link the diagram to women in low-productivity sectors.
Question paper p.5Mark scheme p.13Open in the tool
A-level Paper 1, June 2017, Q8Evaluate25 marks

Context 2: The gender pay gap

Extract F (lines 19–20) notes that ‘The UK Government recognises the need to raise aspirations and attainment for girls’. Use the extracts and your knowledge of economics to evaluate the policies that government might use to reduce the gender pay gap.

Examiner insight

What to cover
Assess policies: equal pay law, affordable childcare, shared parental leave, education and careers guidance, pay transparency.
Watch out
Match each policy to a cause. A list of policies with no link to causes stays in the middle levels.
Question paper p.5Mark scheme p.15Open in the tool

Multiple choice questions

  1. A-level Paper 3, June 2025, Q21

    Table 6 shows the size of the UK labour force and the percentage of the labour force belonging to a trade union in 2012 and 2022. Table 6 Size of the labour Proportion of the labour force force (millions) belonging to a trade union 2012…

  2. A-level Paper 3, June 2025, Q22

    Table 7 shows four situations in which one group of workers earns less than another and states the reason given by employers. Which one is the best example of wage discrimination? Table 7 Situation Reason given by employer

  3. A-level Paper 3, June 2024, Q21

    All other things being equal, Table 7 shows how the number of workers employed by a profit-maximising firm affects its total output per hour and the price it is able to charge for the product produced. Table 7 Number of workers Total…

  4. A-level Paper 3, June 2024, Q22

    Figure 6 shows a perfectly competitive labour market. The left-hand diagram shows the supply of labour (SLI) and demand for labour (DLI) for the industry. The right-hand diagram shows the demand for labour (DLF) for one firm in the…

  5. A-level Paper 3, June 2024, Q30

    Figure 8 shows the market demand (DL) and supply (SL) of labour in a labour market with a trade union. The initial trade union negotiated wage is W 2. Figure 8 The trade union negotiates an increase in the wage from W 2 to W 3. All other…

  6. A-level Paper 3, June 2023, Q25

    Figure 6 shows the supply of labour (SL) and demand for labour (DL) in a perfectly competitive labour market. Figure 6 All other things being equal, which one of the following combinations would mean that wages in this labour market are…

  7. A-level Paper 3, June 2023, Q26

    Which one of the following is most likely to affect the elasticity of demand for labour in a particular occupation?

  8. A-level Paper 3, June 2022, Q28

    Figure 8 shows the marginal cost (MCL), average cost (ACL) and marginal revenue product (MRPL) curves for labour in a specialised computer programming industry. Figure 8 Following a series of mergers between firms in this industry, a…

  9. A-level Paper 3, November 2021, Q1

    The average university graduate can expect to earn more over their working life than the average school leaver. This is most likely to be explained by

  10. A-level Paper 3, November 2021, Q15

    An increase in the national minimum wage may be used to make the distribution of income more equal. Such a policy is most likely to be effective when the elasticity of demand for labour in low-paid work is

  11. A-level Paper 3, November 2021, Q27

    Figure 9 shows two labour supply (S1 and S2) curves for workers qualified to the level necessary to be employed in a particular industry. Figure 9 All other things being equal, the shift of the supply of labour curve from S1 to S2 is most…

  12. A-level Paper 3, November 2020, Q2

    All other things being equal, the demand for labour is more likely to be wage elastic if

  13. A-level Paper 3, November 2020, Q20

    Figure 5 shows the market demand for labour (DL = MRPL), the market supply of labour (SL=ACL), and the marginal cost of labour (MCL), in a particular industry. The employer in this industry is a monopsonist. Figure 5 From Figure 5, it can…

  14. A-level Paper 3, June 2019, Q26

    All other things being equal, which one of the following is most likely to cause the marginal revenue product of labour curve in the shoe manufacturing industry to shift to the right?

  15. A-level Paper 3, June 2018, Q27

    The diagram below shows the demand and supply curves for skilled labour (Ds and Ss) and unskilled labour (Du and Su) and the wage differential (W s–W u) between the two types of labour. All other things being equal, which one of the…

  16. A-level Paper 3, June 2018, Q28

    In a labour market dominated by a monopsonist, wages and employment are usually lower than in a competitive labour market. This is because a monopsonist

  17. A-level Paper 3, June 2017, Q4

    The diagram below shows the market for bricklayers. The original equilibrium wage is W 1 and the number of bricklayers employed is N1. Which one of the following events is most likely to increase the wage paid to bricklayers to W 2 and…

  18. A-level Paper 3, June 2017, Q9

    The marginal revenue product of labour is the

  19. A-level Paper 3, June 2017, Q19

    The diagram below represents the market for unskilled agricultural labourers where the demand for agricultural labourers is DL and the supply is SL. The trade union representing agricultural labourers has negotiated a minimum wage of OWmin…

  20. A-level Paper 3, Specimen, Q4

    The diagram below shows the Marginal Revenue Product of Labour (MRPL), Marginal Cost of Labour (MCL) and Average Cost of Labour (ACL) curves in a market where there is a single employer but labour is supplied competitively. The employer’s…

  21. A-level Paper 3, Specimen, Q18

    Assuming a perfectly competitive labour market, a firm’s demand curve for labour would be derived from its marginal

Question text is quoted from the question papers, © AQA, for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.