If the demand for labor increases while the supply remains constant, what is the expected effect on the labor market equilibrium wage and employment levels?

When the demand for labor increases but the supply stays the same, employers need to hire more workers. This increased demand means that companies are willing to pay higher wages to attract more employees. As a result, the equilibrium wage, which is the wage at which the number of workers needed matches the number of workers available, will rise. For example, if a factory needs more workers because it is producing more goods, it might increase wages to attract the best candidates. Consequently, we can expect that both the wage level and the number of people employed will go up in this situation.