Tightening Labour Market: This means that unemployment is falling and there are few job vacancies available. The decline in job vacancies tends to push up wages as firms find it more difficult to recruit workers. Tightening Labor Market
I read this article and I am not sure why the decline in job vacancies tends to push up wages.
Maybe I do not understand the decline's meaning here.
I looked for it in dictionaries and it says
A gradual and continuous loss of strength, numbers, quality, or value. (Oxford Dictionary)
Does 'the decline' here mean 'a contiunous loss of value? or 'a loss of quantity'?
I think from the context, the meaning would be 'a loss of value'.
But the first sentence says "there are few job vacancies" and it means there is a small number of job openings, right?
I am confused. Please help me.
(+) I read this definition too so I thought tightening labor market has more jobs than job seekers. That's why I am confused:
labor market definition:
An area of economic exchange in which workers seek jobs and employers seek workers. A “tight” labor market has more jobs than workers. In a “slack” labor market, the reverse is true. (The New Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Houghton Mifflin Company.) Labor Market definition