The job market is usually described as a place where employers search for employees and employees search for jobs. It is important to note that the job market is not a physical place but it is a labour economics concept, demonstrating the competition and interplay between demand and supply of labour.
Widely, it is believed that the job market can grow or shrink, depending on the labour demand and supply within the overall economy, specific industries, education level or specific job functions. A job market operates the same way a physical market does. This connotes that a good understanding of market dynamics would help us understand the job market better.
In the world of business, there is a strong belief that two types of market exist – the open market and the hidden market.
The open market is where anybody who is interested can participate; that is the real visible place where market transactions take place. The second type is the hidden market – the one in which market participation is only available to a privileged few, based on relationship. This is more like the typical ‘behind closed doors’ type of market transaction – nobody gets to know about it until after the deal is finalized.
The major distinguishing factor between the open market and the hidden market is the fact that, in the open market, you have many sellers chasing fewer opportunities; whereas in the hidden market, the reverse is the case. You have fewer sellers chasing more opportunities. This analogy is also true for job market.
Many job seekers do not know that we have the open job market and the hidden job market!
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