How does the labor market work?
The labor market is a social ecosystem that is changing from generation to generation, given rapid social changes, new forms of employment and the dynamism of the workers themselves.
The labor market is the whole set of labor offers and demands that are part of an economy and that require human resources to function.
How does the labor market work, and who are its actors?
The labor market is the one that allows you to satisfy your needs for goods and services. To have money you must work, although it is not the only way to obtain income; There are also retirements, withdrawals, disability pension payments, social benefits, etc. that are called current transfers. These transfers occur in some countries and not others.
There is a very important actor in this labor market game that is the state, the state needs a private labor market since it obtains the tax money from there so that everything works, although there are cases where private property does not exist We are focusing on countries with a capitalist and liberal culture or with little state participation.
Among the actors we find the active, within the active the employed and the unemployed, the unemployed are those people who are of working age but are looking for work and cannot find it.
This group is within another branch that are people of working age, there we find active (mentioned above) and inactive.
The inactive are those people who are of working age, but are not interested in doing it, do not need it or do not directly want it. We could find housewives, college students, or people who don't like to work.
There is a great debate about whether a housewife or a person who performs housework at home is an unpaid worker, but that depends on the legislation of each country.