Which of the following occurs in a tight labour market?
A) unemployment is high
B) the numbers of job applicants and job openings are about equal
C) compensation rates decline
D) the demand for labour exceeds the labour supply

Question

Quizplus · Accepted Answer

In a tight labour market, there are more job openings and fewer job seekers, which means that the demand for labour exceeds the labour supply. This situation usually leads to higher wages and better working conditions as employers compete to attract workers. Options A, B and C are all characteristics of a slack labour market where there are more job seekers than available job openings.

Which of the Following Occurs in a Tight Labour Market