Job Market


DEFINITION of 'Job Market'

A market in which employers search for employees and employees search for jobs. The job market is not a physical place as much as a concept demonstrating the competition and interplay between different labor forces. The job market can grow or shrink depending on the labor demand and supply within the overall economy, specific industries, for specific education levels or specific job functions.


The job market is directly related to the unemployment rate. The higher the unemployment rate, the greater the supply of labor in the overall job market. When employers have a larger pool of applicants to choose from, they can be pickier or force down wages. As the unemployment rate drops employers are forced to compete more heavily for available workers, which has the effect of increasing wages.

  1. Unemployment Rate

    The percentage of the total labor force that is unemployed but ...
  2. Structural Unemployment

    A longer-lasting form of unemployment caused by fundamental shifts ...
  3. Cover Letter

    A written document submitted with a job application explaining ...
  4. Resume

    A one to two page formal document that lists a job applicant's ...
  5. Peter Principle

    An observation that in an organizational hierarchy, every employee ...
  6. Lagging Indicator

    1. A measurable economic factor that changes after the economy ...
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  2. At what stage of business should human resources planning occur?

    Human resources (HR) planning is an ongoing process. This is particularly true for companies with large workforces when labor ... Read Full Answer >>
  3. What are the main goals of human resources planning?

    Human resource (HR) planning is an organizational technique that uses human resources to help achieve optimal outputs. Companies ... Read Full Answer >>
  4. What economic indicators are important to consider when investing in the retail sector?

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