A shortage of workers is driving up wages: are we entering a new economic era?

Read the Story

Show Top Comments

I’m personally seeing (in a factory) people more concerned with conditions, namely hrs than wages. Especially when it comes to off shifts. Companies are gonna have to accommodate these people in some way if they want to be staffed.

0ellno

The higher wages are just adjusted for inflation. Pretty much going to be making the same amount of money.

CLEVELAND-99

the idea that wages going up is a new economic era is ridiculous in the very early years of the U.S. Alexis de Tocqueville wrote in democracy in America about the constant struggle between workers and employers when it comes to wages and in America wages have been suppressed for a very long time.

GreasedIron

I know personally of an employer looking to hire but having trouble finding skilled applicants. I asked if she raised the wage to attract better candidates and discovered although she did get the wage increased, it was still lower than last year measured with inflation. I doubt margins are so slim that employers can only afford to increase their salary benefits 1-3% and not keep above inflation. Edit: i was always bad at math, but I’m fairly sure keeping a 1-3% salary increase to match inflation won’t translate to 10% increase for an employers salary budget like users ITT are stating… unless maybe you’re imagining an inflation to rise to 10%. In that case, isn’t that a sign of a troubled market? But wtf do I know, I guess I’m just “ignorant”.

LetMePushTheButton

Specific paragraph I copy-pasted from the article: >But here is the really interesting thing. Whatever the toxic actions of modern populists, the big, long-term picture suggests that 2021’s labour problems may be an early sign of inevitable economic readjustments. The size of China’s workforce began to decline nearly 10 years ago, and wages there have increased accordingly. Across the west, working-age populations are also declining. And Covid has introduced another set of changes to economies and societies, pausing globalisation, apparently squashing birthrates and planting big questions in people’s minds about life and work. All these things may yet begin to restore at least some of the bargaining power that most employees have lacked for years. Supply and demand, folks. There are plenty of possible reasons why this is; Demographic decline leading to smaller labour pool, coronavirus ccausing people to be less willing to work, coronavirus/Brexit leading to less labor immigrants and therefore smaller job supply, coronavirus stimulus leading to higher demand for labor, coronavirus stimulus as a social safety net making people less willing to work for peanuts thereby limiting labor supply, shrinking labor pool in China making UK labor more competitive, etc.

Wazzupdj