The dutiful parrots of the media continue to push the "labor shortage" myth. Unemployment is near an all-time low. Yet, we still hear the cries of "labor shortage" and "skills shortage" in the media.
CNBC recently wrote The U.S. Labor Shortage Is Reaching A Critical Point. Employers are supposedly having trouble finding qualified employees to fill 6.7 million job openings.
Lacking self-awareness, the article stated, "Employers are going to have to start doing more to entice workers, likely through pay raises, training and other incentives."
Just as basic economics would predict.
As Dean Baker wrote, "We aren't seeing large-scale increases in pay despite near-record profit shares. This suggest that either employers are really not short of workers or that they are too incompetent to understand the basics of the market."
Baker continued, "The implication of the CNBC piece that claims that hiring is down because businesses can't find qualified workers. If this really is the problem, then the solution, as everyone learns in intro economics, is to raise wages. For some reason CEOs apparently can't seem to figure this one out, since wage growth remains very modest in spite of this alleged shortage of qualified workers."
For Further Reading:
The Washington Post Really Really Hates Markets When It Means Higher Pay For Ordinary Workers
Americans Need To Stop Obsessing Over The Unemployment Rate