…The obvious question “Why are Job Openings so hard to fill?”…
If the Demand for workers is there, why hasn’t the supply caught up yet? The short answer is Price. Employers have been reluctant to raise wages. This is classic problem where buyers and sellers get anchored on some past level, failing to keep up with the realities of markets.
The old trader cliché “More Buyers than Sellers” often omits the phrase “at this price level.” For any trade to occur there must always be at least one seller for each buyer (and vice versa); once there are no more sellers at a specific price level, if you want to find more stock for sale, you must look at higher price levels.
After several decades of lagging prices for low wage labor, I believe what we are witnessing is something very similar. THERE IS NO MORE LABOR FOR SALE AT $7/HOUR; so the price moves up. Once it moves up high enough so that supply matches with demand, you get a stabilization at that level…
Want to hire qualified candidates who will fill jobs, generate revenue, create profits, and lower your overall cost structure? Perhaps you should consider offering higher starting wages.
Barry Ritholtz doesn’t waste time or space on any of the penny-ante analyses offered up all over mass media. A fair piece of the crap reasoning offered up online and in print isn’t so cheap, either.
Just RTFA. This was the lead in his newsletter, today. Barry maintains his dedication to telling the truth as he sees it.