Job Market Equilibrium

Job market equilibrium occurs when the supply of workers meets the demand for workers, resulting in a stable employment situation. When there are enough jobs available that match the skills of job seekers, wages tend to stabilize. If more jobs are available than workers, employers may raise wages to attract candidates, whereas if there are more job seekers than available positions, wages may decrease. This balance ensures that most people who want to work can find jobs, and employers can find the talent they need without excessive competition for workers.