March 13, 2018
It seems Germany is suffering from a skills gap also, at least according to Reuters. It told readers:
“Labour shortages in Germany are threatening the whole economy as companies struggle to fill around 1.6 million job vacancies, the DIHK Chambers of Industry and Commerce said on Tuesday.”
According to the OECD, labor compensation rose by just 2.6 percent last year, down from a 2.9 percent rate in 2016. When an item is in short supply, we expect the price to rise. If there is a housing shortage, buyers or renters bid up the price of housing. If employers can’t get workers, then the normal route is to offer higher pay, which will attract workers from competitors.
Apparently, German employers don’t understand basic economics. Their ignorance is apparently jeopardizing the whole economy, according to the DIHK Chambers of Industry and Commerce.
Comments