The Labour market

The demand for and supply of specific skills meet in the market to determine
wage rates for particular jobs. Here as elsewhere in economics, demand,
supply, and price are interdependent. Wages help to call forth labor supply
and to determine where particular workers will seek employment. Wage rates
also, given particular demand curves for labor, determine how much labor each
employer will be willing to hire.

Apart from its wage-determining functions, the labor market is important in
other respects. Whether employers who need labor and workers who need jobs
are able to locate each other quickly, whether square pegs drop readily into
square holes, whether workers’ skills adapt themselves slowly or rapidly to
trends in labor demand-all affect the efficiency of the economy.

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One thought on “The Labour market

  1. Of course nowadays it is a fact that the unemployment rate generally declines. But there are always some specific jobs on the labour market where people are searched for. This are almost jobs where you need very special education and skills. Well, if you have such special skills, perhaps after many years of education and attending courses, you probably will find a job easily. Generally you are also in a good position to demand for higher wages, because there woun’t be that much competition of people whith this demanded skills. So I think it is always important to do some further education after school. Nowadays it is not enough to find a job after school or studying. You have to improve your skills to stay competitive on the labour market and to be in a good position to demand higher wages.

    Reply

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