In a monopsony labor market, how does the wage determination process affect employment levels compared to a perfectly competitive labor market?

In a monopsony labor market, there is only one main employer for workers, which gives that employer significant power over wage setting. Unlike a perfectly competitive labor market, where many employers compete for workers and wages are determined by supply and demand, a monopsonist can pay lower wages because workers have fewer job options. For example, if a town has only one factory, that factory can offer lower wages since workers may not have other places to work. As a result, the monopsonist may hire fewer workers than in a competitive market, leading to lower overall employment levels. This situation can create an imbalance, as the employer benefits from lower costs while workers may struggle with lower pay and fewer job opportunities.