“The US (and Canadian) Labor Shortage Explained” and What Needs to Happen

Applicable to Canada as well as many of us Canadians know, especially since the introduction of contract part-time work that pays no benefits and is either minimum wage or slightly above, while also expecting “contract” people to use provide and use their own capital for an employer’s benefit, such as, but not limited to, computers, Wifi, and vehicles.

“Companies looking to attract enough blue-collar workers will have to continue increasing wages and, as a result, possibly experience diminished profits,” wrote Gad Levanon, chief economist for North America at the Conference Board, a global economic research organization that has studied the recent US labor shortage.

Slow income growth has been the most persistent problem affecting the US economy in its recovery from the Great Recession. Wages have barely kept up with the cost of living, even as the unemployment rate dropped and the economy expanded.

 With such a tight labor market and rising productivity, workers should expect much bigger pay raises than they’re getting.

Private sector workers (excluding farmworkers) got a measly 8-cent average hourly raise in July, adding up to an average pay of $27.98 an hour. Workers’ wages only grew about 1.6 percent in the past year, after adjusting for inflation.

While that’s faster than wages have been growing since the recession started in 2007, it’s still a pathetic amount compared to the sky-high payouts corporate CEOs are getting.

But raising wages will only do so much to ease the labor shortage. Businesses will need to hire more foreign workers too.

Excerpts from the following linked article by Alexia Campbell for Vox

https://www.vox.com/2019/8/12/20801941/us-labor-shortage-workers-quit

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KAITLIN ANN TREPANIER

Writer, Founder and President of

Connecting The Dots With The Respect Principle

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August 16, 2019

 

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