The supply of labour is defined as the amount of labour, measured in person-hours, offered for hire during a given time-period. This amount can conveniently be expressed as a fraction or percentage of the total population, to give an activity or labour force participation rate.

The question for any firm is how much labor to hire. We can define a perfectly competitive labor market as one where firms can hire all the labor they wish at the going market wage. Graphically, this means that firms face a horizontal supply curve for labor, as Figure 1 shows.

A perfectly competitive labor market is a composite of many firms that are in competition for workers. Firms have no power to set wages; the market determines a competitive wage. If a firm deviates from this wage, it either pays less and loses workers or pays more, sustains losses, and exits the market.

A lack of competition among employers for workers has contributed to a reduction in bargaining power for higher wages, leading economists have found.

Here’s how to make yourself more competitive in the job market:

1. Improve your language skills. Learning a new language is an impressive addition to your CV.
2. Get cross-cultural experience.
3. Complete further education.
4. Network, network, network.
5. Get relevant work experience.

The labor market is where people and employers come together to bargain for labor and wages or other forms of compensation. The number of people willing to work is based upon the level of pay that employers are offering. The wage level reaches an equilibrium at the point where supply of labor equals demand for labor.

Setting maximum hours of work (at least before employers pay overtime rates) Prohibiting child labor. Regulating health and safety conditions in the workplace. Preventing discrimination on the basis of race, ethnicity, gender, sexual orientation, and age.

The labor market, also known as the job market, refers to the supply of and demand for labor, in which employees provide the supply and employers provide the demand. It is a major component of any economy and is intricately linked to markets for capital, goods, and services.

How to succeed in a competitive job market

1. Get relevant work experience.
2. Engage in voluntary work.
3. Enhance your education.
4. Network.
5. Customize your resume for each job.
6. Build a professional online profile.
7. Obtain leadership skills.
8. Stay up to date on market trends.

A perfectly competitive labor market has the following characteristics (1) a large number of firms competing to hire a specific type of labor, (2) numerous people with homogeneous skills who independently supply their labor services, (3) wage taking behavior, and (4) perfect, costless information and labor mobility.

A perfectly competitive labor market is a composite of many firms that are in competition for workers. Firms have no power to set wages; the market determines a competitive wage. If a firm deviates from this wage, it either pays less and loses workers or pays more, sustains losses, and exits the market.

An assumption of the competitive labor market model is that: labor is homogenous. capital is more important than labor. labor markets are monopsonistic. there is no equilibrium wage rate.

Competition in a scarce labor market affect wages because when there is scarcity in labor this means that there is a shortage of workers for a specific job. Wages/salaries for workers will affect because employers will tend to make the salary high because of high demand.