COLORADO SPRINGS — Recently, worker productivity has been on the decline, causing a shift in the labor market.
According to UCCS economics expert Tatiana Bailey, employers are now having to raise wages to attract future employees, while leading to a trend where workers are paid more to do less.
At the same time, workers are quitting at a high rate, meaning it takes longer for new workers to learn the job and reach peak productivity. Another factor is the number of workers who retired during the pandemic.
“Older workers have institutional knowledge that younger workers typically don’t,” Bailey said. “That demographic impact alone can negatively impact productivity quite a bit.”
According to Bailey, we have an acute labor shortage in almost every industry and companies are unable to meet demand due to a lack of workers. According to Bailey, 49% of business owners say they have jobs they can’t fill, which is also leading to decreased production.
Bailey explains that the reason for a decline in worker productivity is because there simply aren’t enough workers and companies can’t keep up with demand.
Last weekend, I wrote about Warren Mosler's argument that the Fed's rate hikes could be…
Last weekend, I he wrote on Warren Mosler's argument that the Fed's rate hikes could…
Last week, the chairman of the Fed, Jerome Powell said, "the disinflationary process has begun".…
Earlier this week, I joined Romaine Bostick and Scarlet Fu Bloomberg TV. The Congressional Budget…
Tomorrow morning, I'll be joining CNBC's Squawk Box to talk about a new effort tax…
Former Vice President Mike Pence talks about privatizing Social Security. The remarks came Thursday before…