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by endzone 3602 days ago
a shortage that's not reflected in the wages for skilled jobs (outside of powerful unions)
3 comments

Quite the contrary. Welders, carpenters, or heavy equipment operators in my country enjoy a decent pay, yet there is a shortage. For some weird reasons those who studied so sought-after political studies or literature can't be bothered with a job that consists of physical work and doesn't require a degree.
In some places it has been.

Man I sometimes wished I had a valid mechanicans or electricians certification during the oil boom here ;-)

and now you wouldn't have a job.

in the uk, the plumbers/electricians are lucky to make £20/hr.

In the UK, plumbers and electricians can make more than developers do.

It depends where they work - London and the SE pay a lot better than the run down cities in the North - and how good their network is.

I used to know someone with a well-paid City job who retrained as a plumber. He earns almost as much as he did and is considerably less stressed. The only downside is occasional snobbery.

I know that in Israel there's shortage in those professions, but the pay isn't good. So maybe it's more complex that simple supply vs demand ?
i can't think of any reason why basic economic principles wouldn't apply.
Say you have a small factory ,employing 50 older welders doing a risky job at relatively little pay.

Say you need 10 more welders - but those guys really don't like risk so they would need a big increase in the salary, maybe 50%-100%. But you know that than the word will get out and the older workers will demand similar salaries.

So it's a big jump in total labor-costs per work-unit. And let's not forget - revenue per employee can be quite limited in many places. So maybe paying low is the better state for the business.

But demand doesn't come from a single factory... Why isn't another factory poaching those older workers for more pay?