1. MARKET FOR LABOUR LABOUR MARKET IN EQUILIBRIUM SL
0Q = Actual employment
Q-QF = Voluntary Unemployment W
No involuntary Unemployment DL QF Q
Actual employment
Voluntary
Unemployment

2. MARKET FOR LABOUR LABOUR MARKET IN DISEQUILIBRIUM SL
Involuntary unemployment W W
Voluntary
Unemployment DL QD QS QF
Actual employment

3. MARKET FOR LABOUR LABOUR MARKET IN DISEQUILIBRIUM SL W W SHORTAGE DL
Voluntary
Unemployment W W
SHORTAGE DL QD QS QF

4. INSTITUITIONAL & SOCIAL CONSTRAINTS
Labour markets like other markets will tend to return to equilibrium’
However, this does not happen because of barriers put in the Market place.
These barriers could be either placed by GOVERNMENT regulations like:
Minimum Wages or
2) Regulations regarding workplace safety
3) LABOUR UNIONS: They tend to pressure the wages to remain at higher levels. These wages are known as ‘STICKY WAGES’ as they are not allowed to fall below when the market forces require it to.