In a perfectly competitive labor market, how is the wage determined for workers?

In a perfectly competitive labor market, the wage for workers is determined by the interaction between the supply of labor and the demand for labor. Employers need workers to produce goods and services, so they offer wages to attract employees. At the same time, workers have a choice about where to work, and they will seek the highest wage available. When the wage is too low, there will be more jobs than workers, leading employers to raise wages to attract more applicants. For example, if a factory needs more workers but isn't paying enough, it might increase the wage to compete with other companies, ensuring it can hire the number of employees it needs.