In a competitive labor market, what primarily determines the wage level for workers?

In a competitive labor market, the wage level for workers is mainly determined by the balance between supply and demand for labor. When many people are looking for jobs (high supply) but there are not enough jobs available (low demand), wages tend to go down. Conversely, if there are many job openings but not enough workers to fill them, wages can go up as employers compete to attract employees. For example, if a new factory opens in a town and needs workers, it might raise wages to attract applicants. This balance helps ensure that wages reflect the value of the work being done and the availability of workers.