Labourmarket
A labour market is the arena in which workers offer their labour in exchange for wages and employers hire labour for productive activity. It covers formal and informal work across sectors such as manufacturing, services, and agriculture. The supply of labour reflects individuals’ skills, education, age, and preferences, while demand is driven by the need to produce goods and services. The market is shaped by institutions such as education systems, wage-setting arrangements, unions, employment laws, and by macroeconomic conditions and technology.
Wages adjust to the interaction of supply and demand. Strong demand and restricted supply tend to raise
Key indicators include the unemployment rate, the labour force participation rate, and the employment-to-population ratio. Data
Public policy aims to improve labour-market outcomes through active measures such as retraining programmes, wage subsidies,