Supply and Demand in Labor Markets

Supply and demand in labor markets refer to the balance between workers willing to work at various wages (supply) and employers seeking workers at those wages (demand). If wages rise, more people are willing to work, increasing supply. Conversely, when employers need more workers or wages are attractive, demand goes up. The intersection of supply and demand determines the equilibrium wage, where the number of workers willing to work matches the number employers want to hire. Factors like skills, education, and economic conditions influence both supply and demand, impacting employment levels and wages.