Can someone give me a good short definition of "labor demand"?
A baby that really can't wait a second longer to be born and is getting obstreperous! ;-)
Addendum for Pengy and Trevor:
Ridiculous answers! Just ridiculous!!
If the market is tight for a specific skill the demand for that skill is high and wages increase. If the market for that particular skill is not in a high need, the wages decrease. Company's use this ratio in determining pay, and costs for production of a product
Labor Demand: The quantity of labor demanded by producers (firms) at any given wage rate.
That is, it is a function that describes how the producers' hiring decisions change as the wage rate changes. It is a downward sloping function (higher wage implies lower quantity of labor is demanded by firms).
More detail: It is derived from equating the firms' marginal value product of labor with the market wage rate. This assumes firms are wage-takers (can't influence market wage rate)... it becomes more complex if they can. The marginal value product of labor is essentially the *value* of the output that another worker will produce for the firm.
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