Labor Economics | future of work | Supply compression


The future of work continues to change as organizations automate and reskill processes.

It’s common to say that the future of work is distant or hybrid, but the future of work that productivity needs is extremely cheap labor – for capped hours.

One of the reasons many jobs were offshored was not necessarily automation, but cheap labor – partly because labor policies were so rigid – to the detriment of workers and workers. premises.

Although the internet has changed some of that with the gig economy – or fluid work: for commuting, deliveries, freelancers, short stays, etc., the current supply chain squeeze and shortages widespread in the midst of inflation could be attributed to the cost of labor – somewhere, with cheap labor in others, then an interruption occurred and supply fell. is rarefied.

An important avenue as inflation deepens uncertainty is how labor can be hyper-surplus, projected onto productivity, in energy, agriculture, commodities, etc. How can labor be so cheap, below minimum wage, that it is possible to increase economic output, in many places?

Hiring level.

The model, as postulated, is to hire people for the same roles, same shifts but at different levels. The experienced at level 1, the intermediate at level 2, and the inexperienced in this work at level 3. Level 3 would be basic operations, doing repetitive things, but no more than 2 hours per stretch and for a half – hour, at least .

It is this level 3 that has the most advantages, in terms of productivity possibilities. It is not low pay for many hours of work, nor low pay for work that is not difficult. It’s low pay for repetitive work, for an hour or two.

It is possible to think that the short periods may constitute wasted time, because new people replace the others after only about an hour, perhaps, but in the possibility of this model, for the availability that the workforce would provide, the 10 minutes can be compensated for, with those in level 2 or those wishing to add more minutes.

For some they may say that working on an assembly line requires certain gears, so how many would be produced, how would they be decontaminated, etc.

People are worth more than materials, and there are parallels to include that can ensure facilities are sufficient as well as in excellent condition for the standards required at work.

Although in some industries, for semiconductor manufacturing, level 3 may have to work for 2 hours 10 minutes, rather than 1 hour or 30 minutes, in a nursing home it would be different, in some small businesses, it would be different, in a car factory it might be similar to that of semiconductors, also for some fast moving consumer goods and so on.

What we want to make available is the workforce, a means to make this possible; outside the current configuration lies the level labor economy. What people may seem to lose in the difference from the minimum wage is gained in the short time, process knowledge and input into the production process, for all.


About Author

Comments are closed.