What circumstances are often seen in a tight labour market?

Question

Quizplus · Accepted Answer

In a tight labour market, demand for labour exceeds the labour supply, meaning there are more job openings than there are available workers to fill them. This puts the bargaining power in favour of the job seekers, allowing them to negotiate better compensation rates and benefits. This is opposed to choice B where unemployment is high, meaning there is a surplus of labour and hence low demand for jobs. Choice C suggests a balance between job openings and applicants, meaning no tight labour market. Choice D suggests declining compensation rates, which typically occurs in a weak labour market with low demand for workers.

What Circumstances Are Often Seen in a Tight Labour Market