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. Structural Unemployment

    A longer-lasting form of unemployment caused by fundamental shifts in an economy. ...
  2. Cover Letter

    A written document submitted with a job application explaining the applicant's ...
  3. Resume

    A one to two page formal document that lists a job applicant's work experience, ...
  4. Peter Principle

    An observation that in an organizational hierarchy, every employee will rise ...
  5. Natural Unemployment

    The lowest rate of unemployment that an economy can sustain over the long run. ...
  6. Unemployment Rate

    The percentage of the total labor force that is unemployed but actively seeking ...
  7. Job Openings and Labor Turnover ...

    A survey done by the United States Bureau of Labor Statistics to help measure ...
  8. Full Employment

    A situation in which all available labor resources are being used in the most ...
  9. Demand For Labor

    A concept that describes the amount of demand for labor that an economy or firm ...
  10. Lagging Indicator

    1. A measurable economic factor that changes after the economy has already begun ...
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