This article states how the economy has reached an all time low in
individuals filing for unemployment benefits suggesting that the labor market
has further tightened. The article mentions,
“Further tightening in labor market
conditions could boost wage growth.”
This quote suggests that this
tightening of the labor market shows that wage growth would increased, however,
what will happen to the qualified labor force that will be looking for jobs in
the future considering that the labor market is very tight currently? I think
unemployment rate will increase, labor force participation rate might decrease
and workers will be discouraged to look for jobs as they will be aware that the
labor market is tense.
Moreover,
even though it is really encouraging that the economy is currently almost at
full employment with an extremely low unemployment rate, the qualified and educated
labor force will make looking for more jobs even more competitive and the
increase in wage growth would make this low unemployment rate short lived and a
sharp increase in unemployment will follow.
2 comments:
I agree with you that the economy with almost full employment and very low unemployment rate might make the future labor market more competitive. However, I think the fact that many baby boomers are retiring and leaving the labor force might help to ease up the tense labor market.
i thought that this article was interesting to read since most of us are seniors and are searching for jobs right now. The almost full employment and very low unemployment sounds good but it will make the finding of jobs for students more difficult. it will be interesting if when the baby boomers start to retire if it will make finding jobs easier since there will be more spots open.
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