![]() ► At the national level, Congress can address broken immigration policies and work to allow more people to move to the U.S legally. In the longer term, elected and regulatory officials can make a difference in numerous ways: Policymakers should relax licensing requirements and staffing rules. Regulation should shift to allow employers to offer a variety of wage/benefit/training packages depending on worker desires rather than being based on preset publicly mandated minimums.ĭenied overtime or tips?: Working ‘off the clock’? When employers steal wages from workers Older employees who wish to remain active in the labor market should be encouraged and supported by reducing or eliminating potential reductions to existing retirement benefits. Restrictions on gig work and flexible work schedules should be reduced, not heightened as California is currently doing. ![]() In the immediate term, there is a relatively passive way leaders can help: they can relax labor market regulations to allow employers maximum flexibility in hiring their workforce.ĭig deeper: Why hasn't US recovered all the jobs lost during COVID-19? Because local governments can't attract workers Analysis suggestions Slow supplies: Why you'll be waiting a while for that new house to be builtĪccording to the analysis, the focus of government agencies and policymakers will need to focus on increasing labor supply and helping employers adapt to a new world where workers are a scarce resource. Moreover, the state’s demographic forecasts do not paint an optimistic outlook for future trends.įew workers. The state’s lack of housing acts as a functional cap on population and labor force growth, degrading affordability and driving workers and businesses to other locations. “It is not going to disappear as the COVID crisis fades.”Īs bad as the labor shortage is national, it is worse in California, especially Southern California, according to the analysis. “This is a long-term demographic problem, not a short-term cyclical one,” said Thornberg. “Whether it’s the missing factory worker, delivery truck driver, or sales clerk, the scarcity of workers hinders the ability to connect demand to supply and is slowing economic growth.” “For several decades, there has been a substantial slowdown in the growth of Americans in their prime working years,” Thornberg said in a written statement. While fixing the supply chain should be a top priority, worker scarcity and population growth are the actual underlying cause - and a critical future challenge for the U.S. The new analysis was released Wednesday by the UCR School of Business Center for Economic Forecasting and Development and Director Christopher Thornberg, who authored the report. ![]() ![]() Just walk into any store or restaurant in the High Desert, and you’ll probably notice a sign that says “Now hiring” or explaining why they’re short-staffed or have reduced hours.Ī recent report from the University of California, Riverside, shows that the inability to meet consumer and business demand during the COVID-19 pandemic is caused mainly by worker scarcity, driven by the lack of basic, long-term population growth.
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