The issue is we already have a shortage of workers. If we really want the economy to grow, then we need to cut benefit programs and force people to work. Labor force participation is still low. We’re ~5%j lower than pre dotcom levels. I have no idea who all these adults are who don’t have to work. I’ve clearly made the wrong life choices. Lol.
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Maybe more people would join the work force if it was less time and less stressful. Youngsters today can’t handle stress and always have something better to do than work. They don’t even know how to handle a shovel. I had to teach an 28 year old idiot from Wisconsin how to shovel snow yesterday. I guess his parents just let play video h games. Another tenant has a 25 year old son who never leaves his room. The zombie apocalypse is upon us.
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All the millions who are entering via the border now will do the work for $6/hour under the table.
The was exactly Powell was pointing, lot of demand for workers, no one ready to lay off except tech industries.
This demand has to go away, otherwise inflation won’t be controlled!
The FOMC weighs 55% for labor side for inflation control which is not happening now. Until this happens, FOMC will continue to fight inflation.
Many families are single earning households, and one spouse is an adult. Does your comment include those?
Seriously, what kind of benefit programs are you talking about? Can someone pay their rents in Bay Area without large savings or a job? Then there are other costs such as health insurance, car insurance, food, cost of utilities, etc etc.
Probably section 8, rent control, living with parents/relatives, etc. There are plenty of ways to get by on the cheap. I agree that we have a major shortage of skilled labor and moving to a 32 hour work week would only further stress the system. Wage inflation during Covid was largely driven by a shortage of workers exacerbated by social programs.
Even this, Powell answered in Q & A.
With long expansion and bull market, boomers who lost jobs during 2020 pandemic never returned to work force.
After pandemic issue, now company needs more labor force and demand is not reducing.
These yes I agree. Of course these will not be gone ever, not in CA for sure. It’s a 2 sided thing, one side you’re really helping some needy people, other side there is chance of leakage.
This one should be ok if both parties agree, since it’s an individual/personal decision and people are paying out of their savings/jobs. Of course this is doable only if it’s affordable.
You are dreaming. I can’t get farm labor at $35/hr
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Yes, appx that age. He was point 4 millions jobs shortage and the demand is not reduced as companies are not laying off ( other than tech )!
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.
Where?
Restaurants/ Pubs/ Clubs - Shut all down!
4M shortage on labor force existing at present. He accounts 55% of inflation is coming from labor force and services sector. They have analysts team, take survey…etc. Just listen his last conference, which you missed, from YouTube recording (Q&A) he responds.
To your other point about how expensive everything is, how do people afford it with 1 income? Don’t both people have to work? A full 5% less of the population is working than in 2000. Cost of living is MUCH higher now. Salaries in real terms have been flat.
Section 8 is a big one to take care of housing. There are 30+ different programs to take care of everything else.
Interesting. I wonder why.
That tells me, salaries need to rise further so that people get motivated and not coerced to work?
In farmer’s market I do notice many “food stamps” used to buy food. Also, once I saw a guy pay with “food stamps” at Lucky’s.
Because it’s hard work that Americans have no interest in doing. Farm labor has been done for generations by poor immigrants. They all but disappeared in all the border crack downs. Same is true in the restaurant, hospitality and construction business.
American kids that have never done household chores are incapable of doing hard physical labor
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It’s the welfare cliff. People who make under $30k get about $50k a year in benefits. It traps them in low paying jobs or not working at all.
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