At this morning’s conference, someone asked a question about Wages, and I was reminded of this chart.
With that sort of ratio, upwards Wage pressure is likely to be non-existent (exceot for specific skillsets . . .
As the chart shows, there are now almost seven people in the total pool of available labor competing for every job opening out there. Here we are celebrating the second anniversary of this statistical recovery and this ratio is still double the historical norm. Since every market, including labor, will inevitably clear at a given price, the price of this particular market, called wages, can be expected to deflate going forward given this enormous imbalance between supply and demand.