The labor market is an economic environment, in which due to the competition between economic agents, the supply and demand mechanism establish a certain amount of employment and wage level.
The labor market is an important multifaceted sphere of economic and political life of the society. On the labor market, certain factors estimate the value of the labor force. They determine the terms of its employment including the amount of wages, working conditions, job security, the possibility of obtaining education, professional growth, etc.
The labor market obeys the supply and the demand by many principles of the mechanism of its functioning. It represents a market of a special kind. It has a number of significant differences from other market goods. Not only factors of the macro- and microeconomic but also social and psychological (not always related to the labor price – wages) have influence on the labor market.
In the USA, it represents an average of 20% of the country’s population growth.
In real economic life, a number of factors that influence both the supply and the demand of labor affect the dynamics of the labor market. The factors of the demographic determine the supply of labor.
Immigration processes have a significant impact on the dynamics of the workforce. In the USA, it represents an average of 20% of the country’s population growth. In addition to the legal ones, several millions of illegal immigrants live in the United States (mostly from Latin America). The process of immigration increases the total supply of labor on the market and strengthens competition on it.