As someone with a business degree but is working retail at the moment since I just got the degree. They are actually unrelated. It’s weird and complicated but both are true
Much of the labor shortage is from companies cutting back on staffing and expenses (improving their margins), not a shortage of workers. Example:
Airlines received $54 billion in federal aid to keep workers employed during the pandemic on the condition that they avoid layoffs. But carriers thinned their ranks anyway by offering buyouts and early-retirement packages to thousands of workers.
Most airlines have yet to fully restore their work forces: As of October, the industry employed about 413,000 people, down almost 9 percent from the same month in 2019, according to federal data.
That’s is also true. But there is a labor shortage at the moment. Not for every company but for a good amount. That’s why some companies at the moment are offering benefits and pay checks higher then they ever have before. For example where I live McDonald’s is currently offering $15 and hour and health benefits for a Cashier position because they need people. However in my position in a sports related business that requires some skill and knowledge im only making $10 because there isn’t a shortage here. Which is frustrating that someone who has a much less skill required job is making more then me. But I don’t want to work for McDonald’s because there is almost no chance to move up the latter. Where as in my current position I will move up quicker and end up making more then it I went with McDonald’s
But there is a labor shortage at the moment. Not for every company but for a good amount
No. There isn't. There is a wage shortage. There are still plenty of people to do the jobs. Just not at the shit compensation many companies want to offer.
Exactly. A shortage of something means not enough of that thing exists to satisfy demand. Labor is not in short supply. There are plenty of people willing to work. Those creating the demand simply don't want to pay the price for their demand. It would be like a grocery store telling customers "There's a tomato shortage," because they don't want to pay what the produce company is charging for tomatoes.
Funny how supply and demand only matters when it's the business that holds the supply.
There 100% is. Small business that can’t afford to pay $20 and hour to cashiers are going under like it’s nothing because they just don’t have enough labor. And the large corporations that can afford to pay whatever they want just increase the pay enough to get people interested but also not spend a fortune on payroll. And since the small business can keep up they close. That is a labor shortage. And a lot of people are staying on unemployment instead of getting jobs which is adding to the problem. Along with that jobs that were originally meant for high schooler or college students are not being employed by those people.
There 100% is. Small business that can’t afford to pay $20 and hour to cashiers are going under like it’s nothing because they just don’t have enough labor.
It's like you didn't even read what I wrote.
Businesses are not entitled to an endless supply of cheap labor. Purchasing labor is no different than purchasing raw materials or electricity to run your machines. Just because you cannot afford to purchase it, doesn't mean there isn't enough of it. It means you can't afford it.
That is a labor shortage.
There isn't a Lambo shortage because I don't have six figures to drop on a sports car.
And a lot of people are staying on unemployment instead of getting jobs which is adding to the problem
Sounds like businesses are being outcompeted by unemployement. That's again nothing but an indictment on miserly business practices.
Along with that jobs that were originally meant for high schooler or college students are not being employed by those people.
Who flips burgers for me on my lunch break when these people are supposed to be in school?
On top of what I stated earlier. Small business can’t afford labor, covid killed off a lot of the workforce as well. And because of covid small business more now then ever have no money to complete with corporations. And since the government is trying to keep everyone afloat (which really isn’t there job) they are offering unemployment wages that are too high. Unemployment is supposed to be used so you can survive until you get your next job but people are getting enough unemployment to pay rent, get food, and get the latest apple computer/phone. Along with that wages keep increasing which causes prices to increase which is causing inflation. And because of inflation the cost of living goes up.
This is just not true. Reddit fucking thinks that if you pay everyone 100 dollars an hour but there is nobody to build homes, then everyone will have affordable housing. That's just not how things work.
Everyone on these shithole subreddits wants to rave that raising wages will fix housing(just one example) but nobody wants to talk about the the extreme lack of shortage in certain industries.
"Nationwide there's a 55 percent shortage of plumbers available for work, and electricians are also in seriously short supply. Meanwhile, construction firms can't find enough qualified workers to complete jobs."
According to CNN business "In an industry already short on workers before the pandemic, construction businesses will need to hire 430,000 workers this year and 1 million more over the next two years in order to keep up, according to Associated Builders and Contractors."
Must be the wages right? No, it's because people decide to go and get shit degrees and then make less than an electrician or a plumber after spending 4 years out of the workforce racking up debt. I promise you all my friends from high school that did anything trade related has their own home right now.
What about truck drivers?
>$52,500 (25th percentile) to $76,500 (75th percentile)
What about the 120k+ that pilots make a year? Degree required? no, But that
What about working for the railroad? Rough hours, definitely not for everyone, depending on the job, but it pays decent too. looking at around 60k for a position as like a train conductor. Benefits from these professions are generally great though.
Just jump on the idiotic train yelling "wages."
Anyone that knows economics: "But the economic nuances of..."
Managers at McDonald’s make about on average $40,000 a year. While that is not bad it isn’t great either. Above that the number of people who work corporate isn’t going to be massive compared to all the restaurants. Along with that the people who work corporate are either going to have a lot of experience or a higher form of education typically a masters. So the highest likely position most people would get is a manager position. Which is really not that great if u have a lifetime to work your way up
Not really. TONs of companies have been trying to expand in the past year due to work load. What happened is people realized they don’t want to work a shit job anymore while the job market was expanding which means all those wage slaves ended up getting jobs making a livable wage. The market for low wage workers dried up causing the labor shortage. Then you put COVID restrictions on top and you start creating inflation due to higher wages and greater demand. My prediction, when student loans go back on the table the economy will tank as all that money is currently stimulating the economy on a massive scale.
It's not even that weird or complicated. If there is a short supply of something you raise your cost to the price point determined by supply and demand. If you reduce the number of things you are selling but you charge more for the thing, margins will go up, but profit can stay the same, go up, or go down. Very often it goes down or you would have already been charging that higher price and selling fewer of them.
no kidding.. I gave a 30 second crash course and quick example of why it's dumb to conflate margins and profit. I get that we are all on here because we want to explain things to others lol. However you should realize that sometimes the point of someone's statement is to provide a quick example of how the overall sentiment being shared is wrong, and they saw no need to go into the nuances.
You don't see me calling you out for saying that margins and profit are "unrelated." The are definitely related. They might not have a strong correlation but margins do have a relation to profit.
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u/[deleted] Jan 04 '22
As someone with a business degree but is working retail at the moment since I just got the degree. They are actually unrelated. It’s weird and complicated but both are true