In factor markets, the demand for labor is solely determined by the number of jobs available, independent of the productivity of workers.

In factor markets, the demand for labor is influenced by the number of jobs available, but it is also closely related to how productive workers are. When businesses need more workers, they look for people who can help them produce goods or services efficiently. If workers can produce a lot in a short time, companies will want to hire more of them, increasing demand for labor. For example, if a factory introduces new technology that allows workers to produce twice as many toys in a day, the factory will likely want to hire more workers to take advantage of this increased productivity. Thus, while the number of jobs is important, the productivity of workers plays a key role in determining how many workers are needed.