Employers Like To Complain About Lack Of Labor, But Reluctant To Pay More

Aug. 21–U.S. Federal Reserve Chair Janet Yellen's speech on the economy is the most anticipated portion of the annual Economic Symposium Conference in Jackson Hole, Wyo. this week, but the most interesting discussions will be around this year's theme: the labor market.

Unemployment, under-employment and low-quality jobs continue to hamper the U.S. recovery from the Great Recession, and many economists wonder if there has been a fundamental shift in how the labor market behaves. Employers nationwide complain about not having enough qualified workers, even though the unemployment rate remains high.

Texas employment numbers have been much stronger, thanks mostly to the boom in oil and natural gas production that has taken up much of the slack in the Texas labor market. When Texas employers complain of a shortage of workers, it's because the unemployment rate here really is low.

One reason for the shortage of workers nationally, the Wall Street Journal ventured Thursday, is the unwillingness of employers to raise wages. Better pay would induce more people to participate in the labor market, or relocate to where there are jobs.

Another problem could be what employers consider to be qualified. The Greater Houston Partnership has launched an initiative to make sure young people get training that matches the needs of local employers.

There is also the question of what qualifications the employer is demanding and the barriers to employment many low-income people face. Perhaps employers take responsibility for training workers, or making sure they are paid well enough to pay for childcare and health insurance.

The findings presented at the conference over the next three days could answer a lot of questions about what it takes to make sure every American benefits from the nation's recovery.

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