Sunday, September 9, 2018

Inelastic labor market

Chart from Zero Hedge

31 days is a long time to get a hire and would kill small businesses.  Wage space is wasted, not enough wage slots to shorten the search time.  

Huge weight on labor because of the myriad of government fees and fixings. So the typical firm can find few wage slots, not already hammered by marginal guv costs.

If I believed that a labor market could be isolated, I would say the market is contracted, dropped rank two years ago.

The key secular trend is boomers retiring, of course.  It adds to the government burden on wages and shortens supply.

The contracted labor system will soon reduce demand..


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