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I don't think you're interpreting the labor force participation rate correctly. A low rate usually means that a significant portion of people simply aren't loo
by mdorazio 5y ago
I don't think you're interpreting the labor force participation rate correctly. A low rate usually means that a significant portion of people simply aren't looking for work at the moment, but the reason for that is not reflected in the rate. Right now, many people have decided that taking pandemic payouts is a better option than working for low wages with no benefits, so the rate is lower than it would normally be. If wages were to go up (or when the payouts stop), the math would change and the rate would likely recover.
- missedthecue 5y agoBut that's the definition of a shortage of labor. Like you said yourself, the solution to remediate the issue is to stop paying people enough not to work.
- biaachmonkie 5y agoWhy do you view that as the solution instead of Employers raising the wages they are offering until they get enough workers? Why must the answer be to force people into desperation such that they have to take crappy jobs with low pay and no benefits?
- missedthecue 5y agobecause it's worth it to most people to make less working 0 hours per week than it is to make a more putting in 40 hours. The government is competing with businesses for buying time, but they are willing and have the means to push the price to infinity.