Final answer:
Labor costs can change due to various factors, including compensation, total output, inflation rates, hours worked, and the level of education. Changes in labor demand and supply can be influenced by different factors that cause movements along or shifts in the respective curves.
Step-by-step explanation:
According to the information provided, changes in labor costs can be attributed to changes in compensation, total output, inflation rates, hours worked, and the level of education.
In terms of labor demand, changes in compensation and total output cause a movement along the demand curve. However, other factors such as changes in the production process and government regulations can cause a shift in the demand curve.
In terms of labor supply, changes in compensation cause a movement along the supply curve, while other factors such as job desirability and government policies can cause a shift in the supply curve.