The labour market is the interaction between the demand for labour and the labour supply. In other words, it is the interaction between employers' need for workers and the number of people working or looking for work.
Both the supply and demand of the labour market can be influenced by many factors. These can result in a shortage or a surplus of either the demand or the supply. The factors can relate to the skills or educational qualifications in demand or in supply, the mobility or immobility of the workforce, a lack of understanding about the trends in the market, and changes in social conditions.
A labour market can be a local community, a city or a country. In your role as an employment consultant, you should understand the specific labour market in which you work. You should also have an understanding of the Australian labour market as a whole.