This article argues that there is a shortage of skilled labor based on the statements of a number of employers. At one point it reports that it is not realistic for employers to offer higher wages “because it would make them uncompetitive.”
If this is true, then there is not really a shortage of skilled workers. Employers always want to pay workers less than they do. Other things equal, lower pay for workers leads to higher profits. However, if the market will not support paying these workers higher wages, as this article claims, then there is no shortage of supply. Firms simply want to be able to hire workers at below the market price in the same way that homebuyers would like to buy a home at below the market price.
August 31st, 2004
Quote of the day:
I'm going to be adding a new state to my list of states visited. September 13th through 15th I'll be in Miami on business. I'll actually have the evening of the 13th free. Now… to figure out what I can do on a Monday night in Miami.