The labor market and its structure consist of a specific product - labor. Therefore, the buyer does not acquire a person, but his ability to work. Consider in more detail the main provisions.
Demand and supply in the labor market are formed under the influence of a number of premises that can be divided into large groups.
Economic forces
Demand and supply in the labor market are determined by the purchase and sale of labor, which can affect this process and, naturally, the cost of its services.
Non-economic factors
We are talking about social, national, demographic and legislative prerequisites that affect the supply and demand in the labor market. Their significance and character are determined by the characteristics of the country's historical and economic development. The regularity of its formation is that it is heterogeneous in composition, differing in specific characteristics and the presence of a large number of segments.
We single out in more detail non-economic factors.
First of all, supply and demand in the labor market are affected by the total number. The dynamics of the population, the present and future labor resources are judged, as a rule, by indicators of mortality, fertility, life expectancy and so on. Currently, the demographic situation is quite complicated. Thus, mortality significantly exceeds the birth rate of the population, which will negatively affect twenty years later, creating a significant shortage of labor in the future.
The second significant factor on which the supply on the labor market depends is the number of the able-bodied population. This is the part that has the necessary mental and physical abilities.
The third significant factor is the amount of time worked. The employee will be able to determine how much he wants to work and which one he will choose for himself.
The fourth factor is the quality characteristics of workers. We are talking about the level of education, specialist qualifications, productivity and more. According to this parameter, Russia occupies one of the leading places.
The fifth parameter is the presence of migration processes of the working - age population. It implies the movement of citizens from one territory to another with a change of place of residence and work. In Russia, immigration processes have led to an increase in the number of labor offers on the labor market and unemployment. Moreover, visitors are ready to perform duties at a lower cost than its citizens. At the same time, emigration from the country has clear signs of a brain drain.
Therefore, the main subjects of demand in this market are the state and business. In the latter case, we are talking about large companies, medium and small businesses.
There is an optimal pattern: the demand for labor services is inversely dependent on how much wages are. With the growth of the latter and the presence of other equal conditions, the number of offers decreases. Otherwise, the demand for labor is increasing.