Surplus Labor

Surplus labor refers to a situation where the supply of workers exceeds the demand for their services, often leading to unemployment or underemployment. In economic terms, it occurs when there are more workers available than are needed to produce goods and services at the current wage rate. This can result from technological changes, shifts in industry demand, or other structural factors in the economy. Essentially, surplus labor indicates an excess of workforce relative to available job opportunities, which can contribute to lower wages and economic inefficiencies if unresolved.