Friday, May 07, 2021

This is what normalization looks like in our economy

California's unemployment rate was down to 8.3 percent this March from a high of 16 percent in April 2020. It sure would be great to cut that figure in half -- and we're on our way. There's enough renewed commerce that signs like this are showing up all around. 

But employers are whining; they aren't finding the workers they want.

Economist Paul Krugman explains the labor market phase we're now living through as the pandemic recedes.

As it happens, I’ve been poring over a report titled “U.S. Small Businesses Struggle to Find Qualified Employees.” The report summarized a survey conducted by Gallup and Wells Fargo, which found a majority of businesses saying that it was hard to hire workers. 
Oh, did I mention the date on the report? Feb. 15, 2013 — a time when there were three unemployed workers for every job opening. There was, in fact, no shortage of qualified labor, and the unemployment rate kept falling for another seven years. 
So what was that about? Employers in a depressed economy get used to being able to fill vacancies easily. When the economy improves hiring gets a bit harder; sometimes you have to attract workers by offering higher wages. And employers experience that as a labor shortage. 
But that’s how the economy is supposed to work! Employers competing for workers by raising wages isn’t a problem, it’s what we want to see.
I feel sure Big Box corporation doesn't agree. That's capitalism for you.


Anonymous said...
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anynameleft said...

Meanwhile corporations such as Costco who pay living wages cruise along with a backlog of applications and low turn over.
Pay more and treat employees with respect and guess what most labor issues disappear