Labor demand refers to the number of workers that employers are willing and able to hire at a given wage rate. It is influenced by various factors, including the overall economic conditions, the level of production, and the availability of technology. When businesses expect higher sales, they typically increase their demand for labor to meet that demand. Changes in wage rates can also impact labor demand. If wages rise, some employers may hire fewer workers or invest in automation to reduce costs. Conversely, if wages decrease, employers may be more inclined to hire additional staff. Overall, labor demand is a crucial aspect of the labor market.