In a labor market, the supply refers to the employees or the labor class and demand refers to the employer willing to hire these employees on a certain wage. In a labor market, equilibrium is reached when the employers are willing to hire all the number of employees on the wages these employees/labor are seeking and so the consensus is reached between the demand and the supply of labor. Labor market equilibrium behaves in a way similar to any demand supply equilibrium. The supply increases from many factors such as if the wages rise or the population increases. Similarly, the demand is affected by the factors such as unit cost per labor and economic situation and the workforce changes. The interesting fact here is that though the market always tends to achieve the state of equilibrium, but it never actually achieves it for long since the market conditions and workforce attitudes and society values are always changing. For example, women today are more a part of the labor workforce than they were a decade ago and it is still increasing. And such changes in the attitude and beliefs in society affect the supply and demand of labor too. Also, the fact to note here is that the demand of labor is created by the firm who manufacture goods or provide services and these are the firms that play a role to decide the per unit labor wages and have a role to play in achieving the labor market equilibrium. And to achieve this equilibrium, these firms make sure that the marginal cost to hire any new labor should not be more than the revenue addition it brings to the