Labor supply and demand

Labor supply and demand refers to the relationship between the number of workers willing to work (supply) and the number of jobs available (demand). When demand for workers is high, like in a booming economy, employers compete for talent, often raising wages. Conversely, if there are many job seekers but few openings, wages may stagnate or fall. This dynamic helps determine employment levels and influence wages, reflecting the overall health of the job market. Understanding this balance is crucial for policymakers, businesses, and workers as it affects economic growth and living standards.