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In a labour market, there is an interaction between workers and employers. Employers vie for the best worker and the workers, on the other hand, vie for the best job that would be satisfying for them. From an economic perspective, a labour market operates as there are demand and supply for labour.
In a typical labour market, companies labour and the requirement of companies for labour are met with the supply of workers. Labour demand and supply are determined by the power to bargain. Labour market could also be defined as a market where workers find work at predetermined wage rate and employers get eager and willing workers.
Labour markets could either be local, national or even international in their capacity. There could be smaller labour markets interact seeking qualifications, skills, and geographical locations of workers. These types of labour markets heavily depend on information exchange among employers and job seeker in relation to wage rates, terms and conditions of employment, a degree of competition, and job location.
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