#LaborShortage #workers #employers #GreatResignation #BetterJobs #entrepreneurs
Evidence suggests that jobs are easy to find, and workers are hard to find.
So writes Paul Krugman, a New York Times columnist and economist in a column also published April 10, 2022 in The Atlanta Journal-Constitution.
Krugman points out that experts, including himself, have been telling the “Great Resignation” tale, saying the pandemic has forced lots of Americans to rethink work, their jobs, child care, going back to unpleasant environments etc.
But he now points out that he has changed his mind, as new data evolve.
He says Americans are switching jobs, but going to better ones. They are not leaving the labor force in large numbers (and collecting government checks to stay home). Instead, they are going to different work.
One reason Krugman cites, attributing to economist Dean Baker, is many workers are becoming self-employed. They are gig workers, to use current parlance.
Employment figures, naturally, do not include the self-employed. “Reshuffling has involved Americans concluding that they could improve their lives by starting their own businesses,” Krugman writes.
The second reason is immigration, or lack thereof, according to Krugman. An immigration crackdown over the last several years, enhanced by the pandemic, resulted in fewer available workers. To boost the economy, Krugman says, “we should really try to reestablish our nation’s historic role as a destination for ambitious immigrants,” he writes.
In decades past, it has been argued that too much immigration takes jobs from Americans and lowers wages for U.S. workers. Today’s immigration argument, though often not voiced aloud, is that it’s less about jobs and wages and more about demographics and potential new voting patterns.
Because the employment numbers are so hidden, they blur the status of the economy. If employers can’t find workers, or have lost the ones they had prior to the pandemic, those employers should spend more time evaluating how to better attract or retain workers, rather than complain about labor shortages allegedly caused by current government policy.
Workers are out there, albeit fewer than there were prior to the pandemic. There are not a lot of eligible workers sitting home collecting checks. They are working on THEIR terms, performing services that they know how to do, for those willing to pay for them.
If employers believe that different government policy can force workers back to old ways, they will be very disappointed when it doesn’t happen.
If you (desperate employer) know someone who used to work for you, but is now in his or her own business, ask that person why he or she made such a move.
Very likely, they will tell you chapter and verse why. You may not like the answer. But, if you are wise, you will learn something from it.
Starting a business when you’ve always been an employee is a big step. Not everyone who does so will succeed. But, even if they don’t, they may never return to what they used to do, or where they used to do it.
Remember, too, that workers have more choices than they’ve had in years. Most will take advantage of better opportunities that are presented to them. Some will succeed as their own bosses. Wishing it were different, if you are an employer, will not make it so.
Peter
Tag Archives: immigration
IMMIGRANTS BENEFIT ECONOMY
#immigration #prosperity #workforce
Believe it or not, to quote the first line of a newspaper editorial, “immigrants are not the enemy.”
The Tennessean newspaper in Nashville commented on reports compiled by the bipartisan Partnership for A New American Economy showing how immigrants are contributing to the workforce, tax rolls and the overall economy, the editorial reads. It was published in the Aug. 14, 2016, edition.
In Tennessee, the newspaper says, 300,000 residents are foreign-born, or nearly 5 percent of the state’s population. But, they make up 6 percent of the state’s workforce, the editorial says. In 1990, immigrants made up only 1.2 percent of Tennessee’s population.
The editorial cites some notable stats from the report:
• Immigrants annually earn $7.9 billion, pay $493 million in taxes and have the spending power of $5.9 billion.
• They make up 7.8 percent of entrepreneurs.
• They are 32 percent more likely to work than the native-born population (57.8 percent of employed immigrants vs. 43.7 percent of employed natives.)
• Immigrants make up 7 percent of jobs in science, technology, engineering and math (the STEM skills).
Meanwhile, in an article published in The Atlanta Journal-Constitution Aug. 15, 2016, Tim Henderson of the Tribune News Service writes that many officials in small towns nationwide that have lost population in recent years are asking that refugees from the Middle East and elsewhere be relocated to their towns to take jobs they can’t fill, live in apartments and houses that are now vacant and to shop in local stores. The refugees will take the places of native-born residents who’ve moved elsewhere in large numbers.
Immigrants have basically gotten a bad reputation. Some see them as moochers, stealers of benefits and taking opportunities away from native-born Americans. The report, on which the Tennessean editorial was based, tells a different tale.
“(Undocumented workers) are demonized for their legal status, but overall they are giving back more to society than they are getting back,” the editorial says.
Undocumented workers, “though they don’t directly benefit from federal and state aid, but they annually earn $2.1 billion, pay $250 million in state and federal taxes and have $1.8 billion in spending power, “ the editorial says.
Immigrants do jobs native-born Americans won’t do. They are doing many highly technical jobs – not just manual labor – that relatively few native-born Americans are qualified for. Many get their training here, and overstay their visas.
The economic partnership that compiled the Tennessean report is aiming for sensible immigration reform.
It’s easy to blame immigrants, or something else, for one’s hard times.
It’s much more difficult to look for one’s own solutions to the hard times.
If you are looking for something to come into YOUR life that will change things for the betterment of you, there are many such vehicles out there. To check out one of the best, message me. You’ll see people from various races, and nearly all backgrounds, who have taken a step to turn their own lives around.
The economy is changing in ways that we can’t revert. One either has to accept that change and ensure that they can have what they want as the economy changes, or they can blame various people and institutions for their hardship.
If one thinks about it, one can only hope we all choose to accept and ensure. The next time you are working with, or being serviced by, someone who may not look or talk the way you do, know that the person is contributing greatly to the economy, and to the well-being of all of us.
Peter