Changes in factors of production cause changes in demand for labor for any business. The Learning Experience is no exception. One factor that would increase the demand in labor for this firm would be an increase in the number of firms the company has available for the consumer. More firms require more labor to fulfill the demand required to produce output. In terms of The Learning Experience, when another firm is opened it will then require workers to be able to function and produce the care for children. The business cannot allocate labor from one building and relocate it to another. Each unit of labor, or worker, can only produce a certain amount of output. If this is done the labor will be stretched too thin and output would decrease due to the shift in the amount of firms. Therefore, an increase in the demand for labor is required.
Another factor that would increase the demand for labor would be a change in product demand. This is seen when the demand for the product of child care increases, the need for more labor to support this demand therefore increases. For The Learning Experience this could be more children attending care, or a higher interest in the extra services, such as birthday parties and camps. This causes an increase need for workers to suffice for the workload.
When the price of a good or service increases, the demand on labor would also increase. The demand of the good or service did not change, but the revenue is now increased. This make it more profitable to increase labor for that good or service.