3 ms·
When I'm considering how much to ask for (or demand) in pay, I'm not primarily thinking about inflation. I'm thinking about the supply and demand for my type o
by rossdavidh 5y ago
When I'm considering how much to ask for (or demand) in pay, I'm not primarily thinking about inflation. I'm thinking about the supply and demand for my type of labor. If I think I could get more, but inflation is low, that doesn't stop me from asking for more. If I think there's a labor surplus right now, but inflation is high, I am nonetheless unlikely to walk out in search of higher wages.
Similar logic, I expect, applies to the boss side of things.
- smt88 5y agoAlmost no one thinks about supply and demand when negotiating for a job. Most workers have little sense of demand for their position, and even if they did, most jobs are not fungible. Location is extremely important, as are subjective things like culture and the brand of the employer. All that to say: the Econ 101 conception of supply and demand in the labor market is almost never enough to explain the labor market even in very simple terms. That's why the labor market is often doing "unexpected" things, like having trouble filling high-paid jobs driving trucks.
- rossdavidh 5y agoIf I'm getting a lot of recruiter emails, I know demand is high. If I get emails from former coworkers looking for news of job openings, I know supply is high. I think I'm not too unusual in that regard.
- smt88 5y agoYou are unusual in that regard. Most workers are blue-collar and don't get recruited.
- rossdavidh 5y agoTrue, in that case it would be, "do I see lots of 'Now Hiring' signs around town?" Which, currently in Austin, TX, USA where I live, I do. Sometimes more specific, at construction sites, wanting specific trades.