Labor market equilibrium refers to the point where the demand for labor equals the supply of labor, resulting in a balance between the number of workers employers want to hire and the number of workers available for employment.
congrats on reading the definition of Labor Market Equilibrium. now let's actually learn it.
Wage Rate: The wage rate is the price paid to workers for their labor. It is determined by factors such as supply and demand in the labor market.
Unemployment Rate: The unemployment rate measures the percentage of people in the labor force who are actively seeking employment but unable to find jobs.
Minimum Wage: The minimum wage is a legally mandated wage floor set by governments to ensure that workers receive a certain level of income.