Final answer:
Employers might not comply with statutory employment laws due to a lack of awareness, negative impacts of excessive government control, high minimum wages, and the influence of strong unions. Such regulations can create barriers in the labor market, affecting firms' willingness to hire.
Step-by-step explanation:
An employer might not comply with statutory employment laws for several reasons. One common reason is lack of awareness, where the employer might not be fully informed about the legal requirements. Additionally, excessive government control can make compliance difficult, especially if it involves bureaucratic red tape that hampers a business's ability to start up or expand, leading to discouragement in hiring. High minimum wages and powerful unions, backed by government rules, can also deter employers from hiring, especially low-skill workers, because of increased labor costs and potential difficulties in managing the workforce.
It is suggested that governmental regulations such as restrictive zoning laws, requirements for numerous permits and fees, and limitations on business hours can create barriers that affect the demand side of the labor market. These barriers can limit where companies can conduct business and increase the operating costs, which may lead to reluctance in hiring new employees.