Hot topics | Coronavirus pandemic

The labor shortage is a wage shortage | Sheneman

The labor shortage is a wage shortage | Sheneman

If youre a regular reader of financial news, you have most likely read about the countrys labor shortage. Because thats not actually happening, I put labor shortage in quotes. Some businesses and industries are having a hard time hiring because people dont want to work, but because they don't care about what theyre being offered. Employers who previously were able to staff up and pay non-living wages are surprised that people dont want to work full time and drive in their cars during a pandemic.

Workers now have a little bit of leverage and theyve decided to utilize it. With a variety of industries clamoring for workers, workers have dozens of options, and theyve decided they'd rather work somewhere that pays $15 an hour with benefits and flexible scheduling than be on call for $7.25 anhour and 2% employee discount.

If your business cannot pay living wages for full-time workers, you probably dont have a viable business. If exploitation wages are the only way to turn a profit, you may need to reevaluate your business plan. Small businesses may be forced to cut staff or raise prices. If youre wondering where some of these major corporations can get the money to pay a higher wage, just remember that CEO pay has risen 940% in the last 40 years. The average chief executive earns 340 times more than the average worker. The money is there, you just have to pry it out.

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