Skills Supply and Demand

Skills supply and demand refer to the relationship between the skills available in the workforce and the needs of employers. When many people have a particular skill but few jobs require it, that skill’s demand is low, and wages may decrease. Conversely, if a skill is highly needed but there are few available workers with it, demand is high, and wages often rise. This balance influences job opportunities, wages, and how individuals choose to learn or develop skills to match market needs. Understanding this dynamic helps guide education, training, and career choices effectively.