What is a tight labour market?

Question

cannot find this anywhere on the net, does anyone know what it is and how does it impact the australian economy?

Answer 1

A tight labour market is when demand for labour may outstrip supply. An example of this in Australia is:

In the month of November 2007 employers were battling record high levels of staff turnover and offering generous pay increases to no avail.

Hope i helped

Answer 2

It means a very low unemployment rate. For effects see

http://en.wikipedia.org/wiki/NAIRU