4 ms·
Nah, don't think so. With such low unemployment you basically have full employment, that is how economist would describe the situation since it can't got to 0%.
by MichaelRazum 4y ago
Nah, don't think so. With such low unemployment you basically have full employment, that is how economist would describe the situation since it can't got to 0%. Now the wages go up, since you have more competition for labor force and of course people want higher wages based on inflation.
PS:
Sure, more people retired and the labor participation rate is lower then before covid. BUT you will not get them back to work with an increase of 10% or let's say 20% in salary. They retired, that's it.
- ianai 4y agoYea the data support retirees being a stronger factor as discussed here: https://news.ycombinator.com/item?id=34554546 https://news.ycombinator.com/item?id=34554546 But raising pay does still increase the number of people willing to work across the market. It’s also basically the only direct way to increase the labor pool without exogenous or distant factors to the labor market. Raising interest rates would affect the labor market by diminishing financing to the point demand for labor falls. It’s a blunt/economy wide instrument. Labor did enjoy increased market demand and increased wages after the 1918 pandemic. Historically, not wanting to raise wages just reads as sour grapes.