Final answer:
Unemployment is the commonly used term for 'labor market surplus,' referring to the condition where the supply of labor exceeds demand, resulting in job seekers being unable to find work.
Step-by-step explanation:
The more commonly used name for the term 'labor market surplus' is unemployment. This condition arises when there is an excess supply of labor where the quantity of labor supplied by workers exceeds the quantity that firms are willing to hire at the current market wages. According to the supply-and-demand model of competitive and flexible labor markets, in equilibrium, the quantity of labor supplied should be equal to the quantity demanded. However, during a surplus, many individuals are willing and able to work, but they cannot find employment, thus leading to the existence of unemployment.