Labor Demand and Supply

Labor demand refers to how many workers employers want to hire, which depends on factors like the company's needs, wages, and productivity. Labor supply is the number of people willing and able to work at different wage levels, based on skills, preferences, and availability. When wages rise, more people are willing to work, increasing supply. Conversely, higher demand for workers often pushes wages up. The interaction between demand and supply helps determine the equilibrium wage and employment level in the labor market.