What does a high wage elasticity of labor demand indicate about employers' response to changes in wages?

A high wage elasticity of labor demand means that employers are very sensitive to changes in wages. When wages increase, employers may reduce the number of workers they hire or even lay off existing employees because the higher costs make it less profitable for them to keep the same number of workers. Conversely, if wages decrease, they are likely to hire more workers since labor becomes cheaper. For example, if a factory finds that the cost of labor rises significantly, they might invest in machines instead of hiring more workers, showing a strong reaction to wage changes. This responsiveness can affect job availability and the overall labor market.