… then why aren’t wages rising?
It’s basic supply and demand economics. If there is a hurricane in the Gulf of Mexico, oil companies immediately issue press releases about supply shortages and the gas prices rise within minutes.
But for some reason, despite claims of labor shortages in the tech industry among others, wages aren’t rising:
But wages in the tech industry are rising more slowly than those in the economy as a whole. For example, pay for applications software developers, a speciality in high demand, have risen just 8.9 percent in the five years through mid-2012, compared with a 12.5 percent increase for all occupations in the US economy.
So why doesn’t the labor market follow basic economics? Or is there more to this story?