IntroductionIn the theory and practice of industrial relations it is pertinent to note that it arises from employment relationships. It therefore highlights the dual nature of industrial relations and the constant actions of the two parties attempt to control the power in the relationship. Therefore, what is central to industrial relations is the employment relationship between employer and employee as it gives rise to the contractual agenda in the quest for power. As a result of the common practice of bargaining in the employment relationship, three main dimensions can be identified. These are: economic, legal and social; this article will therefore try to show how the three interact and postulate that the economic dimension is more crucial in industrial relations. Economic Dimension Employment relations at its basic level revolve around the economy, this is highlighted by neoclassical economics which provides a theoretical approach on how employment relations take the form of economic transactions across the world. This is because individual workers and firms are eager to respectively maximize utility and profits from scarce resources based on market-determined prices that are beyond their control. For example, employees often look for work using their individual skills at a price offered by companies. Then they can enjoy the utility of that wage through consumption; while capitalists or businesses try to maximize their profits by producing goods and services from employees covered by wages. In this arena of globalization, competition is prevalent in the market environment and therefore companies try to maximize production at a lower wage rate, which leads to pressure on the employment relationship (Dibben & Will... half of document...). ....increasing for example the demographics of women and youth can influence the economic dimension as the market for such groups increases, hence the need to produce more for them by transferring resources there. Conclusion From the document it can be concluded that the research of neoclassical economics and Regardless of the current situation, the economy is the dimension that most influences employment relationships. Regardless, it is also clear that other social and legal dimensions play a role in employment relationships. This is because the legal aspect sets the stage for arbitration and bargaining of employee relations cases. The social dimension is also relevant as it determines the culture of employees and the employer, therefore guiding how they relate. But overall, the economic dimension is clearly the relevant factor in both employment and industrial relations.