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In the long term, yes definitely, and we saw that work first-hand in software development as bootcamps and comp-sci grads started cranking people out. However,
by freedomben 1y ago
In the long term, yes definitely, and we saw that work first-hand in software development as bootcamps and comp-sci grads started cranking people out. However, the ramp-up time means that during those 5 years that it takes for more people to get qualified, this corrective affect won't help.
Also in the real world the wages are sticky enough that they take time to adjust, and then it takes time for people to realize that X field is becoming well paid and then start pursuing it, so realistically the 5 year period is more like 7 to 10. Plus as long as the industry is growing/expanding, demand can continue to outstrip supply due to that stickiness.
Even rapid moving stuff like AI has bee illustrative of this. The AI leaders are all primarily poaching, and wages are astronomical. This is undoubtedly fueling a massive number of people to study/specialize in AI, but it takes years (maybe even a decade) to complete that path (depending on your starting point).
- hvb2 1y ago> In the long term, yes definitely So, in the automotive industry they've been paying too little to attract people. Meaning they now have a shortage. That's still on them. Sounds to me like they made some really nice profits for a couple of years and are now feeling the pain of that. Funny that you mention AI where people are saying there's no need for Juniors anymore. Exactly the same, you'll make some money now and will then likely have to pay for that later.
- freedomben 1y agoYeah, you're not wrong. But collectively saying "the automotive industry" is a little too simplistic, since in theory they are competing and can't be colluding, so "the automotive industry" paying too little shouldn't be possible. In practice though, we all know it isn't that simple, so your point has merit.