Major Factors Affecting the Labor Market The labor market is affected by the following factors: Demographic (population, growth, ethnicity, immigration) Economic (military and defense plans; debt reduction; investment) Educational (elementary, secondary, postsecondary, vocational instruction; employer-based training; apprenticeship programs) Environmental (growth management, transportation, quality of life) Political (national, state, and local politics) Sociological (government social services, welfare reform, ethics, religion, human capital, cultural diversity) Technological (communications, information processing, design, production) Labor market information (LMI) plays an ever-increasing role in identifying workplace trends into the 21st century.