Job Market

What is the 'Job Market'

The job market is the 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.

BREAKING DOWN 'Job Market'

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.

RELATED TERMS
  1. Jobs Growth

    A component of the Employment Situation Summary, reported monthly ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in ...
  3. Monster Employment Index

    An index created by information collected from job postings on ...
  4. Unemployment Rate

    The percentage of the total labor force that is unemployed but ...
  5. Job Hunting Expenses

    Costs that individuals may be allowed to deduct on their federal ...
  6. Demand For Labor

    A concept that describes the amount of demand for labor that ...
Related Articles
  1. Investing

    How Labor Force Participation Rate Affects U.S. Unemployment

    While a falling unemployment rate sounds like a good thing, it can actually be indicative of people leaving the labor force because they can't find a job.
  2. Investing News

    7 States with the Healthiest Labor Markets in 2016

    Find out which states are will have the healthiest labor markets in 2016. The oil states are falling, while states in the West and Northwest are surging.
  3. Personal Finance

    The Complete Guide To Job Searching: Introduction

    Searching for a job is a challenging task whether you are looking for your first job, switching careers or re-entering the job market. The employment outlook is dynamic, responding to current ...
  4. Personal Finance

    The Best Online Job Search Techniques

    Looking for a job? Today the best online job search techniques involve social media, automated searches, and well-crafted online resumes.
  5. Economics

    Understanding Structural Unemployment

    Structural unemployment is an economic miss-match where workers fail to find jobs and employers with available jobs fail to find workers.
  6. Economics

    The Economics Of Labor Mobility

    Loosening labor restrictions has both good and bad effects for a country and its workers.
  7. Economics

    What Qualifies as Full Employment?

    Full employment is an economic term describing a situation where all available labor resources are being utilized to their highest extent.
  8. Professionals

    Key Labor Market Indicators

    CFA Level 1 - Key Labor Market Indicators
  9. Personal Finance

    The Complete Guide To Job Searching

    Here's everything you need to know about looking for a job.
  10. Personal Finance

    Best Websites To Find A Job In Finance

    Using the right job boards for your industry can dramatically reduce the time it takes to find gainful employment. And hiring is on the rise right now.
RELATED FAQS
  1. What is the key difference between the participation rate and the unemployment rate?

    Learn the key differences between the participation rate and unemployment rate, and how taken together, they can provide ... Read Answer >>
  2. How does the U.S. Bureau of Labor Statistics calculate the unemployment rate published ...

    Understand the process used by the U.S. Bureau of Labor Statistics to determine the official unemployment rate for the United ... Read Answer >>
  3. What are some of the key shortcomings of how the U.S. unemployment rate is determined ...

    Understand how the unemployment rate reported by the BLS fails to account for people who have given up looking for jobs or ... Read Answer >>
  4. How did the Great Recession affect structural unemployment?

    Understand the events in America that led to the Great Recession. Learn about structural unemployment and how it was affected ... Read Answer >>
  5. How does the Bureau of Labor Statistics determine the unemployment rate?

    Learn how estimates of the unemployment rate are made based on monthly surveys of American households that are conducted ... Read Answer >>
  6. What is the difference between frictional unemployment and structural unemployment?

    Learn about structural unemployment and frictional unemployment, the differences between the two types and their main characteristics. Read Answer >>
Hot Definitions
  1. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  2. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  3. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center