In a perfectly competitive labor market, if the demand for labor decreases while the supply remains constant, what is likely to happen to the equilibrium wage?

In a perfectly competitive labor market, if the demand for labor decreases while the supply stays the same, the equilibrium wage is likely to fall. This happens because fewer employers want to hire workers, which means they are less willing to pay high wages. Imagine a situation where a factory needs fewer workers due to lower production needs; they may offer lower wages to attract the smaller number of workers they need. As a result, workers might have to accept these lower wages since there are still many people looking for jobs but fewer jobs available. Overall, the decrease in demand leads to a downward pressure on wages in the labor market.