Definition

Labour supply

What does it mean?

Labour supply (arbejdsudbud) refers to the number of people available to work in the labour market at given wage levels and conditions. It is influenced by population size, age structure, education levels, immigration, female participation and policies such as retirement age and activation.

Economists analyse labour supply to understand unemployment, skill shortages and wage trends. In Denmark, sectors such as healthcare, construction and IT frequently report labour shortages.

For individuals, labour supply is about your availability and attractiveness to employers: skills, location, flexibility and mobility. Upskilling and geographic mobility can improve your position in the labour market.

Labour supply meets labour demand — the number of jobs employers want to fill. Mismatch between the two creates structural unemployment or recruitment difficulties.

Magnus Villumsen, Content Creator at Arbejd.com
Defined by Arbejd.com

Magnus Villumsen

Content Creator
Last updated
March 7, 2026