elasticity of labor demand

Elasticity of labor demand measures how sensitive employers are to changes in wages when deciding how many workers to hire. If wages go up or down significantly, and employers quickly change the number of employees they hire, demand is considered elastic. If wages change and the number of workers hired stays mostly the same, demand is inelastic. This concept helps understand how wage changes can impact employment levels in different industries or for different skills. Factors like the availability of alternative workers or the importance of specific skills influence this elasticity.