Labor Demand

Labor demand refers to the need for workers by employers in a given market. Companies require employees to produce goods or provide services, and their demand for labor is influenced by factors like the overall economy, technology, and wage levels. When businesses anticipate growth or increased production, they usually hire more workers. Conversely, during economic downturns, they may reduce their workforce. Essentially, labor demand reflects how many workers employers want to hire based on their operational needs and financial conditions.