The concept of the labor market refers to the market in which individuals provide their experiences, qualifications, skills, and knowledge to owners or employers in order to obtain material remuneration in exchange for carrying out some tasks entrusted to them based on the position they will represent in the organization. In other words, the concept of the labor market refers to the volume of supply and demand for labor, so that employers provide opportunities for demand and employees provide the supply for them, and the labor market is the main component in the economy of any country as it is directly and complexly linked with the markets for capital, products, and services, and by considering the employee as an asset of organizations, this increased The impact of the labor market on the economy means that employment is an important factor in the production of goods and the provision of services, and without their presence, organizations will not reach their goals or be able to achieve the desired profits. employment if the appropriate environment for work is available and wages are available to suit the employee’s location and experience.
What are the components of the labor market?
The importance of the labor market lies in the return it brings to the economies of countries and business owners as the basis for the success of each project or idea, and any employee who works within the organization for a fee is considered part of the labor market. This labor market consists of several basic components that can be clarified through the following :
First: Available manpower
This refers to the participation of the total workforce in the market; it shows the number of participants available to work in the market and takes into account all individuals who provide their skills, experience, and knowledge regardless of the industry to which these services will be devoted, and in the labor market of any country, you will notice a large number of manpower available in the market and looking to work in different types of industries that can suit their qualifications, and the reason for the availability of large numbers of manpower in the labor market is due to several reasons, the most important of which is the high levels of unemployment in most countries.
Second: the workforce that can apply for jobs
This category represents individuals who have the opportunity to apply for certain jobs that they consider appropriate for their qualifications or skills. For example, if a person is skilled in game design and has a good background in these matters, this will enable him to apply to jobs that match this field, such as the jobs available in each of the organizations or companies specialized in the manufacture and development of games, to hone his skills and develop his performance through the exchange of knowledge, and accordingly, the applicant studies all the files or applications that have been submitted to fill his vacancies based on competence.
Third: the workforce applying for jobs.
This component refers to the group of individuals who have shown interest in a particular job position and have sent their resume for it, which also constitutes the first stage of the recruitment process, after which the organization can select them to move on to the next stage of the interview process, and the human resources department is the key element in the performance of this task to select the right person for the available job position.
Fourth: The workforce that has been selected
The evaluation and interview stages follow both the recruitment and training processes. After individuals go through long processes and procedures and different testing methods, the best and most qualified person is selected based on various factors taken into consideration, and the human resources team assigns him to the required position after ensuring his training and following up on his performance in the manner correct and for a specified period of time as needed.
What are the characteristics of the labor market?
The labor market is characterized by several clear characteristics, which are as follows:
- The labor market is the decisive factor in determining how to allocate labor and the cost of work in a simple way, where the employee provides services, production, and profit to employers in exchange for the material wage agreed upon through the contract between the two parties.
- The labor market may be imaginary and not exist on the ground, but it actually exists in the absolute, so that individuals submit their offers with their qualifications so that the employers, on the other hand, constitute the other side by submitting the application, and it is possible that the applicant is an individual or an organization.
- The labor market can be local, national, or even international, as it is considered the place through which information is exchanged about wage rates, level of competition, work location, and employment conditions, and this includes all countries around the world, as there is no country that does not have a labor market.
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