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. Unemployment Rate

    The unemployment rate is the percentage of the total labor force ...
  2. Unemployment

    Unemployment is the term for when a person who is actively seeking ...
  3. Underemployment

    Underemployment is a measure of employment and labor utilization ...
  4. Monster Employment Index

    The Monster Employment Index tracked job availability to help ...
  5. U-6 Rate

    The U-6 rate is the unemployment rate that includes discouraged ...
  6. Search Theory

    Search theory is a study about transactional frictions between ...
Related Articles
  1. Financial Advisor

    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. Insights

    One in Four Employed Workers Are Looking for a Job

    Job hunting is more productive and lucrative for those who are already employed.
  3. Insights

    The Economics of Labor Mobility

    Loosening labor restrictions, which allows for geographic and occupational mobility, has both good and bad effects on a country and its workers.
  4. Personal Finance

    U.S. Labor Participation Rate at Record Lows

    In absolute terms, labor participation hit an all-time low.
  5. 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.
  6. Insights

    5 Sectors Hiring Now

    If you are looking for a job, these careers might be your best bet.
  7. Personal Finance

    8 Reasons To Tough Out Your Job

    Yes, there are many reasons to search for a new job - but consider these eight factors before burning a bridge.
  8. Personal Finance

    Where the New Jobs Are (and Where They Aren't)

    When you're looking for a job, you can greatly increase your chances for success by searching for the right job in the right place.
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 they can provide a clearer picture ... Read Answer >>
  2. What is the difference between frictional unemployment and structural unemployment?

    Learn about structural unemployment and frictional unemployment, the differences between the two and their main characteristics. Read Answer >>
  3. How did the Great Recession affect structural unemployment?

    Structural unemployment is difficult to measure, but there are hints in the data that the spike in unemployment following ... Read Answer >>
  4. What can policymakers do to decrease cyclical unemployment?

    Learn about the tools available to policymakers to reduce cyclical unemployment, and find out more about the role of expansionary ... Read Answer >>
Trading Center