Employers want fewer workers the higher the wage

A higher wage leads to a decrease in the quantity of labour demanded by employers. In one city's market for care workers, care homes might want 5,800 workers at £11 an hour but only 4,400 at £15, because at the higher wage some homes run with fewer staff or replace some tasks with equipment.

Workers offer more labour the higher the wage

A higher wage leads to a higher quantity of labour supplied. People with the right skills move over from other jobs, vacancies attract people from outside the area, and more people train. Suppose 4,000 care workers are willing to work in the city at £11 an hour, and 5,600 at £15.