2.7 - The Labour Market

• The labour market allows workers who are willing and able to sell their labour to meet employers who are willing and able to offer them a job.
• S - Supply of Labour

  D - Demand of Labour

  
• Real wage is a wage that has been adjusted for inflation
• Derived demand occurs when a product/FoP isn't demanded, but is dependent on demand for a product it helps to produce.
• Factors affecting demand for labour:

  • Consumers want more of a good
  • Firms need more workers
  • State of an economy
• Factors affecting supply for labour:

  • Size of working population
  • Wage rate
  • Barriers of entry
  • Education + Training
• PED & PES of the labour for this market could affect how much demand changes if prices change