Figure19-6Equilibrium in the Labour Market The market labour demand curve is the horizontal sum of the individual labour demand curves of all producers. Here the equilibrium wage rate is W*, the equilibrium employment level is L*, and every producer hires labour up to the point at which VMPL = W*. So labour is paid its equilibrium value of the marginal product, the value of the marginal product of the last worker hired in the labour market as a whole.