Labor, Labor Mobility and Wage Adjustments

Abstract

This article aims to present an overview of labor resources, which are important factors driving the economy, with an emphasis on explaining the characteristics of the labor market. The article begins by delving into the basic concepts of labor demand (the demand for labor from employers) and labor supply (the offering of labor in the market). Then, it analyzes the adjustment to equilibrium in the labor market, which is the point where demand and supply meet, which affects the level of employment and wages in the economy. In addition to analyzing the basic mechanisms of the market, the author also explains important concepts related to changes in the labor market, such as labor mobility, whether it is migration or occupation change, which reflects the dynamics of the market, including consideration of wage adjustment, which is an important mechanism that helps the labor market balance and respond to economic changes. Understanding these behavioral changes in the labor market is a very important foundation, not only for theoretical analysis, but also very useful for policymakers and stakeholders in planning and determining various measures to enable the labor market to function most efficiently, support economic growth and distribute human resources appropriately.