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Monday, March 14, 2005

Skills shortage: Part 2

It turns out that we are not only short of skilled workers, but also unskilled workers. And the government wants to revamp IR laws to allow lowerer wages. Hello, anybody home? You are short of workers so you except to be able to get people to work more by paying them less. More likely you are going to lose workers (most likely you best workers) to other businesses who are short of employees and are willing to pay more. I think the government is just not thinking really hard on this issue.

Near to full employment does mean that wages will rise, that will in turn mean that inflation goes up, meaning interest rates rise and demand for housing fall and people have less money to spend, meaning fewer builders and workers are need, causing a halt to the rise in there wages. One would suspect that it works in cycles and is really not that complex.

In the article cited above Costello makes the point that number of people on the single parent payments has double in 20 years. The population was 14 million in 1984 and is 20 million nowdays: A 42% increases. So although doubling sound impressive, what we have is really a less dramatic rise from 1.7% to 2.3% of the population being on Single Parent Payments.

What that articles really says is Costello is a dipshit.

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