Excess supplyExcess supply

Excess supply is the difference between the number of people in the labour force and those who are employed. It is identical to unemployment with the exception that it can take on negative as well as positive values. When excess supply is negative it implies that employment exceeds the labour force. When it is positive the labour force exceeds employment. A negative excess supply for a construction trade suggests there will be insufficient workers available to undertake the amount of work related to that trade.