# Why is the labor demand curve downward sloping like the demand curve for any other good or service?

There is another issue: it is not the nominal wage ($w$) that matters for the companies and workers, but the real wage $\frac{w}{p}$, because both actors need to evaluate the current price level $p$. In an inflation scenario, $p$ will increase, causing a reduction of real wages. When that happens, firms will demand more labor and workers will demand more leisure.