The labour market is a factor market – it provides a means by which employers find the labour they need, whilst millions of individuals offer their labour services in different jobs.
The Demand for Labour
Shifts in the Demand for Labour
The number of people employed at each wage level can change and in the next diagram we see an outward shift of the labour demand curve. The curve shifts when there is a change in the conditions of demand in the jobs market. For example:
The labour demand curve would shift inwards during a recession when sales of goods and services are in decline, business profits are falling and many employers cannot afford to keep on their payrolls as many workers. The result is often labour redundancies and an overall decline in the demand for labour at each wage rate.
Labour as a Derived Demand
Up to date information on the UK labour market can always be found here: http://www.ons.gov.uk/ons/taxonomy/index.html?nscl...