Individual Labor Demand

Individual labor demand refers to the specific amount of workers that a single employer is willing to hire at different wage levels. Employers assess how many employees they need based on factors like the productivity of each worker and the company’s financial capacity. When wages are high, they may hire fewer workers because it costs more to employ them. Conversely, at lower wages, they are likely to hire more, as it is cheaper to hire additional staff. This concept helps explain how wages influence hiring decisions within a particular business.