The Market Wage Rate

The market demand for labor is the horizontal sum of what every firm wants to hire at each wage, and it slopes down. The market supply is the horizontal sum of what every worker is willing to offer, and it slopes up: a higher wage in one market draws people in from other jobs and other places.

Where the two meet is the going wage W_market and the number of jobs L_market. This is the wage an individual firm takes as given in the previous figures. The sliders shift each curve, so you can see what raises the wage and what raises employment.