The most important and most frequently used form of income for a market economy in any country is wages; its movement necessarily reflects many of the economic processes taking place in the state.
Labor market and wages are interconnected. Salary means the price for labor or income that an employee receives for work per unit of time. Salaries can be of several types. Firstly, there is a nominal wage - this is the wage that an employee receives for his labor. Secondly, there is such a thing as real wages, which is inversely proportional to the price level, that is, the totality of goods and services that an employee can purchase at his nominal wage. It happens that nominal wages increase, while real wages , on the contrary, fall due to rapid price increases.
The labor market and wages are often considered together, because the level of wages is determined in the market. The labor market determines the cost of labor, conditions for hiring workers, working conditions, guarantee of employment and additional education, and much more. Moreover, the labor market clearly reflects the extent of unemployment and labor mobility.
As in any other markets, there is a demand and a supply on the labor market. Demand is based on the needs of employers to close vacant positions in the organization, and the supply, respectively, is determined by unoccupied workforce or a change in employment. Supply on the labor market directly depends on the population, especially working age, qualifications of employees, length of annual working time, etc. Demand is influenced by scientific and technological progress, the state of the economic situation, etc.
Demand and offer are in competition, for example, for a good position there are always several candidates who may be asked to take tests when hiring. It happens, and vice versa, when a valuable and skilled worker is in demand at several enterprises, and they offer a higher salary or better working conditions in order to “lure” him to themselves. This is the relationship between the labor market and wages.
There is also such a thing as the value of the marginal product of labor. The number of employees hired is determined by wages and this value. The attraction of new units of labor ceases as soon as wages equal the value of the marginal product. This is another feature of the “labor market and wages” chain.
The Russian labor market, due to its specificity, has many classifications. Let's consider some of them. If we consider the time component in relation to the labor market, we can distinguish the current, promising, potential and forecasted markets.
In addition, in the context of a market economy, we can talk about a regulated and unregulated market. If the market is not regulated, then workers are practically not socially protected, there are no guarantees of employment and labor protection, while the regulated market has an extensive regulatory framework and the state plays a leading social role.
The market of physical labor, mental labor, creative labor, the market of peasant labor, etc. are also distinguished. According to the balance between supply and demand, the market can be equilibrium, excess and deficit.
There is also an external and internal labor market. The external market is determined by the mobility of labor between states, enterprises and organizations, the internal market implies the movement of personnel within the organization, internal rotation of personnel. The latter is based on the principle of “values ​​and qualifications of personnel”, when the “core” of highly skilled, constantly working specialists and “periphery” is formed at the enterprise.
This classification logically implies the division of the market into primary and secondary. In the primary market, high-paying jobs and good working conditions are offered, in the secondary - low wages, instability and poor working conditions.