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by jltsiren 1727 days ago
Good solutions to labor shortages rarely involve making things more labor-intensive.

In wealthy countries, labor costs are already much higher than the costs of operating the bus itself. (People often claim 70% vs. 30%.) If the economy grows in a way that benefits the working class, labor becomes even more expensive relative to the vehicle. The key to cost-effective services is therefore minimizing the number of people needed for providing the service.

1 comments

> Good solutions to labor shortages rarely involve making things more labor-intensive.

Good solutions to skilled labor shortages frequently involve replacing the skilled labor with a larger amount of unskilled labor.

That usually involves moving the jobs to a country with a labor surplus.

The labor shortages we see in the US are mostly caused by the wide gap between the working class and the (upper) middle class. The pandemic disrupted the job market and forced people out of their daily routines. In the aftermath, many people didn't return to their old jobs but started trying harder to improve their lives. They are looking for jobs that pay better, offer better working conditions, and where they get more respect. Many traditional services have a hard time hiring enough people. The solution is likely a mix of offering better jobs, providing the same service with fewer people, and not providing the service at all.

That's how the market adapts.