What economic condition is experienced when job vacancies exceed the number of unemployed individuals?

When job vacancies exceed the number of unemployed individuals, the economic condition being described is known as a labor shortage. In this situation, employers are struggling to fill available positions because there are not enough individuals actively seeking work, or the skills required for the jobs are not possessed by the available workforce. This imbalance often leads to increased competition among employers for available talent, driving up wages and potentially leading to improved job conditions as companies look to attract workers.

In contrast, the other conditions mentioned do not accurately represent this scenario. A surplus of labor refers to a situation where the number of people looking for work is greater than the number of job openings available, leading to increased unemployment. Labor market equilibrium occurs when the number of job vacancies exactly matches the number of people looking for jobs, resulting in a balanced labor market with no excess unemployment or job vacancies. Unemployment specifically refers to individuals who are actively seeking work but are unable to find employment, which does not apply when there are more jobs available than there are people looking for those jobs.