A couple of months ago I wrote about the purported labor shortage in the tech industry. I wondered why basic economics didn’t seem to apply. There was a claimed shortage but wages weren’t rising.
And now today a Times editorial entitled Don’t Blame the Work Force asks:
If a business really needed workers, it would pay up. That is not happening, which calls into question the existence of a skills gap as well as the urgency on the part of employers to fill their openings. Research from the National Bureau of Economic Research found that “recruiting intensity” — that is, business efforts to fill job openings — has been low in this recovery. Employers may be posting openings, but they are not trying all that hard to fill them, say, by increasing job ads or offering better pay packages.
So perhaps this isn’t a real labor shortage as much as a way to convince the government to let them hire more lower paid foreign labor.