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Total supply depends on: Birth and death rates Migration The age distribution of the population The number of people physically capable of working

Wage and employment determination In competitive labour markets the price of labour is determined by the interaction of the demand curve for and the supply curve of labour. Equilibrium price: the point at which the demand and supply intersect/meet.

Labour market conditions and business Different conditions can influence the demand for and supply of labour: Government intervention in the labour market - governments usually intervene in the labour market in order to reach social aims, for example to ensure that all employees are paid at least a minimum amount or to prevent discrimination. Trade unions and professional groups - these organizations' task is to protect the interests of their members. They usually attempt to increase or maintain the pay levels of their members. Their aim can be also to restrict the supply to a particular market. The amount of unemployment - at higher levels of unemployment businesses are able to recruit from a larger pool of labour, and the increased supply may force down the equilibrium rate. Labour shortages are likely to have the opposite effect.