4 ms·
Looking at the demand side, I feel that there are not that many new jobs created, not even by a long shot. So mostly everyone is shuffling their chairs, and ge
by pantulis 5y ago
Looking at the demand side, I feel that there are not that many new jobs created, not even by a long shot. So mostly everyone is shuffling their chairs, and getting a raise. Employers lose here.
If I am right, I'm curious to know why this is happening now. The pandemic should have something to say: people would prefer remote jobs now that most companies have been forced to allow for that job model. But is this enough?
- lotsofpulp 5y ago>If I am right, I'm curious to know why this is happening now. Sometimes, you need a shock to the system to precipitate change. In the US, I was seeing labor supply was getting tight throughout the 2010s, and labor prices were rising for years, but the pandemic shutdown and benefits provided a great catalyst to spur the change that needed to happen to force a change in the price negotiations of labor sellers and labor buyers. I can only hope this change continues and we see more labor price transparency, and more movement in labor markets eventually resulting in reduction of income/wealth gaps.
- medvezhenok 5y agoPart of it might be transfer payments, part of it might be the wealth effect (stocks, house prices etc and everything bubble might have pushed people into retirement earlier). Probably affects behavior on the margin and has people pull away from the work force (and I think the Federal Reserve might be starting to realize that). Also about half of the boomers have / are hitting retirement age and are retiring en masse, which will shrink the available labor supply quite drastically (especially since they were very productive workers in late career stage)