labor market economics

Labor market economics studies how workers and employers interact to determine employment levels, wages, and working conditions. It analyzes supply and demand for labor—how many people want jobs versus how many jobs are available—and how this affects wages. Factors like skills, education, technology, and policies influence these dynamics. When demand for labor increases, wages tend to rise; when supply exceeds demand, wages may fall. The goal is to understand these forces to improve employment opportunities, income levels, and overall economic health.