Definition of Labor Market
Labor Market is one of the very important indicators of a country’s macro and microeconomic situation, as the labor market can be defined as the demand and supply of labor. The employer is in demand for human resources/labor hence, it put the demand in a market whereas the supply of labor or resources is provided by the employees or human resource.
On a macro level, labor productivity rates and the rate of people unemployed are viewed. At the macroeconomic level, there are a number of factors that influence the demand and supply is impacted by, literacy rates, immigration laws, population age, income GDP, etc.
On a micro level, the number of working hours and wage rates is viewed as an important microeconomic factor. The individual firm hiring process, salary, bonus, hiring, and firing are the factors that influence the microeconomic situation of the demand and supply of a labor market.