A low birthrate in Japan led to a general increase in the age of the population in the country. During the 1990s, this led to a decrease in the number of working age people in Japan. What would we expect to occur in the labor market?

Understand the basic concepts: The labor market consists of labor supply and labor demand. Labor supply refers to the number of people willing and able to work, while labor demand refers to the number of workers that employers are willing and able to hire.