Re:SpaceX to lay off 10% of Workforce
by zaroth on Saturday January 12, 2019 @08:24AM
(#18891051)
Wage growth in the US has stalled out for many years, but just recently since the unemployment rate has gotten so low (and this is with the participation rate rising) we are seeing wage growth in excess of inflation.
Wages will not rise if the labor supply exceeds demand. You need more jobs and/or fewer people in the labor force before wages will rise.
The American approach is to provide business friendly regulations and tax policy which incentivize companies to invest and take risks. The “social contract” is not vested with the company, but rather a free flow of employees between companies based on who will hire whom, who will pay the most competitive salary and benefits, and which companies are the most attractive.
The state/Federal government then provides programs that basically provide umbrella protection for all workers like unemployment insurance, short term disability, marketplace health plans, etc.
It’s not efficient for individual companies to be providing welfare to employees they don’t want or need. It’s a drain in the entire economy because the employee is doing less valuable work than they could do elsewhere, and the company has less money to hire workers they actually need.
Wages will not rise if the labor supply exceeds demand. You need more jobs and/or fewer people in the labor force before wages will rise.
The American approach is to provide business friendly regulations and tax policy which incentivize companies to invest and take risks. The “social contract” is not vested with the company, but rather a free flow of employees between companies based on who will hire whom, who will pay the most competitive salary and benefits, and which companies are the most attractive.
The state/Federal government then provides programs that basically provide umbrella protection for all workers like unemployment insurance, short term disability, marketplace health plans, etc.
It’s not efficient for individual companies to be providing welfare to employees they don’t want or need. It’s a drain in the entire economy because the employee is doing less valuable work than they could do elsewhere, and the company has less money to hire workers they actually need.