Saturday, October 7, 2017

Hurricanes, earthquakes and labor markets

I counted three, and the Mexico quakes just as bad.  A sudden layoff of tourist workers across the South, East to West. But short lived, Florida survived.

Except that tourism competes with transportation bottlenecks in the medium term and shipments to Texas and Puerto Rico surge.  Construction workers still displace minimum wage entertainment work.

Then the secondary effects when boomers in the affected areas retire earlier, leaving the rebuilding to younger folks.

Labor is on the move everywhere, for a while.  Labor matching can fall behind, hiring managers need accurate information.  Government retirement accounts are more uncertain. We will likely see some freezing of local and state government hiring, and housing everywhere is disrupted for a while.

I will one up Elon and offer this solution.

No comments: