The labour market is not a place you can see or visit like a vegetable market or a flea market. The name is applied to a "virtual,” i.e. invisible and imaginary, place where the supply and demand with regard to the workforce is regulated. For example, if a particular branch of industry – let us say, the construction industry – needs workers and engineers, companies try to find the right people by going through the employment office (job centre) or placing job advertisements. The level of wages and salaries and working conditions are also negotiated on the labour market. To avoid every worker having to negotiate his or her own wages, working hours and amount of holiday leave, many employees have joined to form unions that represent their interests. Just as workers join together in unions, employers also band together in their own associations. These associations are there to ensure that the interests of employers are also taken into account on the labour market. Labour policies are all those policies that regulate the supply and demand of labour. They are intended to prevent there being
unemployment or – as can also happen – a lack of workers. Labour policies also aim to create the right conditions for the creation of as many new jobs and training vacancies as possible.
Gerd Schneider/ Christiane Toyka-Seid