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My hypothesis is the offered wages are below the market clearing rates. People have a willingness to work for every price offered for their labor. If they aren’

by ianai 4y ago

My hypothesis is the offered wages are below the market clearing rates. People have a willingness to work for every price offered for their labor. If they aren’t filling positions then the wage is too low. Granted, if they raise rates to 10%+ they’ll drive the entire economy into the ditch. Then these jobs will disappear and prices will deflate-along with lots of horrific side effects. Edit-The US minimum wage is 7.25/hr or 15,080 per year at full time. The US poverty level for a single person without children is 15,225. They have to specify it in a spreadsheet. Because of all the qualifications on that information. https://www2.census.gov/programs-surveys/cps/tables/time-series/historical-poverty-thresholds/thresh22.xlsx https://www2.census.gov/programs-surveys/cps/tables/time-ser...

bombcar 4y ago
Anecdotally but I think there's a large portion of the workforce that left during covid and has determined that returning isn't valuable. Mostly the second income in a household, and often the woman (who was lower paid in general anyway). Why return for $20 an hour when you cut all your daycare expenses, maybe even downsized? You'll have to offer a wage high enough to make it worthwhile.
- toomuchtodo 4y ago
  I have seen similar across various age cohorts. Older folks 65+ who opted for Social Security + Medicare versus going back to an office, as well as couples who found better value from single income and making adjustments versus two incomes and intermittent child care arrangements (child care is not only expensive, but difficult to find, due to wait lists, staff shortages, etc).
  - bombcar 4y ago
    Yeah, and I feel many people just needed to "try" it to realize "this ain't so bad, sheep" and then they stick with it. When a second wage earner loses a job you get into a panic because the bills are still coming and you're used to running at a certain spend rate - but when you've been not working for 2+ years now you're going to have acclimatized to one income, and the desire to return may be there, but the fear driven need won't be. And that means you can wait and choose a good offer for you.

by ianai 4y ago

bombcar 4y ago

Anecdotally but I think there's a large portion of the workforce that left during covid and has determined that returning isn't valuable. Mostly the second income in a household, and often the woman (who was lower paid in general anyway). Why return for $20 an hour when you cut all your daycare expenses, maybe even downsized? You'll have to offer a wage high enough to make it worthwhile.

toomuchtodo 4y ago
I have seen similar across various age cohorts. Older folks 65+ who opted for Social Security + Medicare versus going back to an office, as well as couples who found better value from single income and making adjustments versus two incomes and intermittent child care arrangements (child care is not only expensive, but difficult to find, due to wait lists, staff shortages, etc).
- bombcar 4y ago
  Yeah, and I feel many people just needed to "try" it to realize "this ain't so bad, sheep" and then they stick with it. When a second wage earner loses a job you get into a panic because the bills are still coming and you're used to running at a certain spend rate - but when you've been not working for 2+ years now you're going to have acclimatized to one income, and the desire to return may be there, but the fear driven need won't be. And that means you can wait and choose a good offer for you.