4 ms·

There is no worker deficit. The demand-side of the labor market simply isn't willing to pay what the supply-side expects, and is childishly throwing a tantrum

There is no worker deficit. The demand-side of the labor market simply isn't willing to pay what the supply-side expects, and is childishly throwing a tantrum that for once they have to compromise to market forces. The so called "worker deficit" only exists below ~15-20/h. Above that there's no issue whatsoever. It's a seller's market. Suck it up.

adam_arthur 5y ago
So why is it a seller's market? What are the market forces that led to this, when there wasn't a worker shortage just a little over a year ago?
- 1propionyl 5y ago
  There was never a worker shortage. What there has been is a re-evaluation by workers of the value of their own work. Even without Covid this would have happened as low-income workers in many areas were either rapidly approaching being unequivocally priced out of living anywhere remotely near their work, or already were. Covid just forced the issue sooner and faster, rather than letting it fester. Why would anyone continue working for subsistence wages that can't even pay rent where they live and work? Their only sensible options are demanding more pay or leaving. In major cities, with current rents, it simply isn't feasible to pay janitors, garbage collectors, fast-food workers, restaurant employees, etc as little as they've been paid, for the very simple reason that they can't afford to live there on those wages. Unless we're willing to give up sanitation, garbage collection, fast food, and cheap restaurants in those cities, there is no reasonable solution except increasing wages. (There are of course unreasonable solutions such as exploiting immigrants, wage theft, and prison labor).
  - loosescrews 5y ago
    > What there has been is a re-evaluation by workers of the value of their own work. I think a component of this is hazard pay. The pandemic has made a lot of these low pay jobs more dangerous. If everything else is the same, but the job is now more dangerous, fewer people will take the employment.
- andrekandre 5y ago
  i heard (from a recruiter) many companies put on hiring freeze during covid... now that it looks like we are coming out of it, backlogged hiring is now being worked on...
- lotsofpulp 5y ago
  I would guess there are multiple reasons: 1) People getting government assistance so they are able to survive without their current employer enabling them to quit 2) People re evaluating the risk reward ratio of their jobs, perhaps due to COVID bringing risks into view that previously were not focused on, and also comparing themselves to all the people they see working remotely getting paid more for not taking risks 3) People have time to research other work options since they were able to quit (or lost their job) 4) Demographic changes becoming more apparent as fewer children mean more and more of the working population ages out every year, and if not replaced by immigrants, then there are objectively fewer people competing to sell their labor
ttonkytonk 5y ago
..And it's not all about the money.

adam_arthur 5y ago

So why is it a seller's market? What are the market forces that led to this, when there wasn't a worker shortage just a little over a year ago?

1propionyl 5y ago
There was never a worker shortage. What there has been is a re-evaluation by workers of the value of their own work. Even without Covid this would have happened as low-income workers in many areas were either rapidly approaching being unequivocally priced out of living anywhere remotely near their work, or already were. Covid just forced the issue sooner and faster, rather than letting it fester. Why would anyone continue working for subsistence wages that can't even pay rent where they live and work? Their only sensible options are demanding more pay or leaving. In major cities, with current rents, it simply isn't feasible to pay janitors, garbage collectors, fast-food workers, restaurant employees, etc as little as they've been paid, for the very simple reason that they can't afford to live there on those wages. Unless we're willing to give up sanitation, garbage collection, fast food, and cheap restaurants in those cities, there is no reasonable solution except increasing wages. (There are of course unreasonable solutions such as exploiting immigrants, wage theft, and prison labor).
- loosescrews 5y ago
  > What there has been is a re-evaluation by workers of the value of their own work. I think a component of this is hazard pay. The pandemic has made a lot of these low pay jobs more dangerous. If everything else is the same, but the job is now more dangerous, fewer people will take the employment.
andrekandre 5y ago
i heard (from a recruiter) many companies put on hiring freeze during covid... now that it looks like we are coming out of it, backlogged hiring is now being worked on...
lotsofpulp 5y ago
I would guess there are multiple reasons: 1) People getting government assistance so they are able to survive without their current employer enabling them to quit 2) People re evaluating the risk reward ratio of their jobs, perhaps due to COVID bringing risks into view that previously were not focused on, and also comparing themselves to all the people they see working remotely getting paid more for not taking risks 3) People have time to research other work options since they were able to quit (or lost their job) 4) Demographic changes becoming more apparent as fewer children mean more and more of the working population ages out every year, and if not replaced by immigrants, then there are objectively fewer people competing to sell their labor

ttonkytonk 5y ago

..And it's not all about the money.