Supply and demand play a big role in deciding how much workers are paid in local jobs. Here’s how it works:
Labor Supply: When more workers are available (like when many people move to the area), wages usually go down. For example, if there are 10% more workers, wages might drop by around 4%.
Labor Demand: If there’s a higher need for workers (like when local businesses are hiring more), wages can go up. For instance, a 15% increase in job openings might raise wages by about 5%.
Balance: Wages usually settle where the number of workers matches the number of jobs available. This often depends on what skills are needed and what jobs are common in the area.
Supply and demand play a big role in deciding how much workers are paid in local jobs. Here’s how it works:
Labor Supply: When more workers are available (like when many people move to the area), wages usually go down. For example, if there are 10% more workers, wages might drop by around 4%.
Labor Demand: If there’s a higher need for workers (like when local businesses are hiring more), wages can go up. For instance, a 15% increase in job openings might raise wages by about 5%.
Balance: Wages usually settle where the number of workers matches the number of jobs available. This often depends on what skills are needed and what jobs are common in the area.