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The demand for labor

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Some economists might say: "The demand for labor is a derived demand, because, when the demand for goods and services drops, less labor will be demanded at old wage rates. the surplus of labor that results will ideally lead to a drop in wages until unemployment is eliminated." Why is it that wages are not dropping instead they are inching upward on a year to year basis?

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The demand for labor is explained.

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The demand for labor depends primarily on the value of the marginal productivity that the workers add to the firms. That is, firms are willing to pay to each employee an amount up to the value that they add to the firm. This value depends on two things:

1) Price of the goods sold (if the price rises, then the value of the production of each worker rises; so at a given wage rate, ...

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