The Labor Market

I The characteristics of Labor Market

1- Definition

The nominal market in which workers find paying work, employers find willing workers, and wage rates are determined.

2- Demand for Labor

Demand for labor is a derived demand

At higher wage rates, the demand for labour will be less than at lower wage rates

3- Supply of Labor

The amount of people offering their labour at different wage rates.

Work vs. Leisure

4- Primary vs. Secondary labor markets

Primary labor market.

Secondary labor market.

5- Sectoral Shifts in Employment

Primary sector (agricultural)

Secondary sector (industrial)

Tertiary sector (service sector)

6- Nominal and real wages

Nominal wages are not adjusted for inflation.

Real wages are wages that have been adjusted to take into account the effect of inflation.

There are two sides to labor markets. Labor markets can generally be seen as the application of microeconomics or macroeconomics.

7- The Macroeconomics of Labor Markets

The labor force

The participation rate

The non labor force

The unemployment level

The unemployment rate

The employment rate

8- Types of unemployment
Frictional unemployment Structural unemployment

Natural rate of unemployment

Demand deficient unemployment :

9- The Microeconomics of Labor Markets

Neo-classical economists view the labor market as similar to other markets in that the forces of supply and demand jointly determine price (in this case the wage rate) and quantity (in this case the number of people employed).

II- Labor Market in Lebanon

Labor participation rate, total (% of total population ages 15+)

Labor force participation rate is the proportion of the population ages 15 and older that is economically active: all people who supply labor for the production of goods and services during a specified period.

Labor force total (2007-20082009)

Total labor force comprises people ages 15 and older who meet the International Labor Organization definition of the economically active population

Unemployment, total (% of total labor force)

Unemployment refers to the share of the labor force that is without work but available for and seeking employment. Definitions of labor force and unemployment differ by country.

Economic activity rates by governorate

Distribution of actual labor force by the economic sector of the employing institution

Distribution of the unemployed by educational skill

Sources

Worldbank.org International Labor Organization Labour economics, Freeman, R.B, The New Palgrave: A Dictionary of Economics