What often occurs during a tight labour market?
A) There is a high unemployment rate.
B) The demand for labour exceeds the supply of labour.
C) The number of job applicants and job openings are about equal.
D) There is an overall decline in compensation rates.

Question

Quizplus · Accepted Answer

During a tight labour market, the demand for labour exceeds the supply of labour. This means that there are more job openings than there are qualified job applicants, leading to increased competition among employers and potentially higher wages for workers. High unemployment rates would suggest the opposite scenario, while an equal number of job applicants and job openings would indicate a balanced labour market. An overall decline in compensation rates is unlikely during a tight labour market, as employers would need to offer competitive wages to attract and retain workers.

What Often Occurs During a Tight Labour Market