Labor Supply

Labor supply means the number of people who are willing and able to work. In simple terms, labor supply shows how many workers are available. Labor supply is important because it affects wages, hiring, business costs, and economic growth. When more people enter the labor force, employers may find it easier to hire. When labor supply is limited, businesses may have to compete harder for workers. For example, if more people start looking for jobs after finishing school or returning to work, labor supply increases.