Labor Markets

Definition

Labor markets are where workers supply their skills and services while employers demand labor. These markets determine wages and employment levels based on the interaction between supply (workers) and demand (employers).

Related terms

Minimum Wage: The lowest legal wage that employers can pay their employees, set by governments to protect workers from exploitation.

Labor Force Participation Rate: The percentage of working-age individuals who are either employed or actively seeking employment.

Human Capital: The skills, knowledge, and experience possessed by an individual that make them valuable in the labor market.