Theories of Labour Market

Theories of the labor market explain how jobs, wages, and employment levels are determined. They consider factors like supply and demand for workers, the skills and education of employees, and employer needs. Some theories suggest wages are set where the number of jobs matches the number of people looking for work, while others focus on bargaining power between workers and employers. External influences like government policies, technology, and economic conditions also play roles. Overall, these theories help us understand how labor markets operate, fluctuate, and respond to changes in the economy.